Arizona Senate Breathing New Life into Bitcoin Reserve Bill with Key Vote

By Matthew Holloway |

A bill aimed at establishing a Bitcoin Reserve in Arizona has made a surprising comeback in the legislature. House Bill 2324, introduced by Representative Jeff Weninger, passed through the Arizona House on its third reading but faced reconsideration in the Senate. Ultimately, it advanced with a narrow vote of 16-14. The bill now heads back to the House for further deliberation as lawmakers near the end of the session.

This proposed legislation seeks to create a “Bitcoin and Digital Assets Reserve Fund” to manage all legally forfeited digital assets and cryptocurrencies. If approved, the fund would be responsible for handling assets seized through criminal asset forfeiture.

Senate Fact Sheets indicate that HB 2324 enables courts to order the forfeiture of digital assets linked to criminal offenses. It also outlines procedures for government agencies to sell these assets and specifies how the proceeds will be allocated. The Department of the Treasury would oversee the secure management and distribution of the assets.

Now that the Senate has concurred, the bill must again be approved by the Arizona House before reaching Governor Katie Hobbs’ desk. Its future remains uncertain. According to Coin Telegraph, the first $300,000 from digital asset forfeitures would be directed to the Attorney General’s office. Any amount exceeding that would be divided, with 50% allocated to the Attorney General, 25% to the state general fund, and 25% to the new reserve fund. Although Governor Hobbs has vetoed three cryptocurrency-related bills, she did sign HB 2749, which permits the state to hold unclaimed cryptocurrency and establish a Bitcoin reserve without using taxpayer dollars.

Governor Hobbs previously expressed concerns about the volatility of cryptocurrency, deeming it an imprudent fit for state funding. She categorized such legislation as carrying inherent risks and remaining largely untested.

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for updates and insights.