Arizona Goes All-In: Bitcoin Reserve Bill Passes, Seized Crypto Funds the Future

From Rejection to Revival: HB2324's Wild Ride

Hang onto your hats, crypto fans! Arizona just threw down the gauntlet with HB2324, flipping the script on a once-rejected proposal to set up a state-run Bitcoin reserve. And guess what? It's all going to be bankrolled by the dirty money seized from criminals!

Yep, you heard it right! Arizona's new Bitcoin Reserve bill, HB2324, is setting up a state-managed fund that's gonna handle all those digital assets snatched up through criminal forfeiture. It's like a Robin Hood move, but with blockchain!

Here's the deal: the bill's cranking up Arizona's forfeiture laws to officially welcome cryptocurrencies into the fold. And it's not just about grabbing the goods; it's about locking them down tight with approved digital wallets. The first $300,000 of the seized stash goes straight to the Attorney General’s office. After that, it's a split fest — 50% to the Attorney General, 25% to the state’s general fund, and 25% to the reserve fund. Talk about spreading the wealth!

Now, HB2324 had a rollercoaster ride. It got the boot from the House back on May 7, but then, in a nail-biting 16–14 vote in the Senate on June 19, it clawed its way back. Republican Senator Janae Shamp, who had previously given it a thumbs down, flipped the switch and filed a motion to reconsider. And just like that, the bill roared back into the Arizona House of Representatives and passed with flying colors, paving the way for Governor Katie Hobbs to put her John Hancock on it.

If the Governor signs off, HB2324 will be the second Bitcoin reserve bill to hit the books in Arizona. That's right, they're doubling down on digital currency!

The first bill, HB2749, was already signed by Governor Hobbs earlier this year. It set up a reserve fund for those unclaimed digital assets just chilling in the state's hands. After three years, Arizona can swoop in and take charge, managing them through the Department of Revenue. But hold up, this one's all about abandoned assets, not the criminal kind or law enforcement seizures.

And let's not forget the two earlier attempts to get a Bitcoin reserve going — SB1373 and SB1025. Both got the veto hammer from Governor Hobbs. Those bills wanted the state to dive straight into investing in Bitcoin and other cryptocurrencies. But the Governor wasn't having it, citing all sorts of risks and policy headaches.