Arizona Senate Approves Bitcoin Reserve Bill in Tight Vote

• Arizona Senate approves HB 2324, advancing plans for Bitcoin reserve funded by seized crypto.
• The bill splits forfeited crypto between the Attorney General, state fund, and the reserve fund.
• HB 2324 returns to the House for a final vote before reaching Governor Katie Hobbs.

Arizona lawmakers have given a fresh push to a Bitcoin bill that aims to create a state-run digital asset reserve. On Thursday, the Senate voted to approve House Bill 2324 in a close 16-14 decision. Senator Janae Shamp, who had previously voted against it, later moved to revive the proposal.   

If passed, HB 2324 would create a ‘Bitcoin and Digital Assets Reserve Fund’, which would manage digital assets seized in criminal cases. The first $300,000 from any forfeiture would go to the Attorney General’s office, while the remaining assets would be split, with 50% going to the Attorney General, 25% to the state general fund, and the last 25% to the new reserve fund.

The bill also aims to update Arizona’s forfeiture laws by allowing the state to seize and manage digital assets. The state could claim crypto from people who are deceased, deported, or have abandoned the property. However, the authorities must initially prove that there is no one to take ownership and also show that diligent efforts were made to find one.

Senator Jeff Weninger sponsored HB 2324, proposing to bring digital assets into Arizona’s financial systems with the support of other Republican lawmakers. However, the Senate vote mostly followed party lines. Republican Senator Jake Hoffman was the only one from his party to oppose it.

Related: Arizona Becomes Second State to Enact Crypto Reserve Bill

Bill Moves to Arizona House for Final Decision

The bill now returns to the House of Representatives for a final vote. There are 60 members in the Arizona House, 33 of whom are Republicans. If the bill is approved at this level, it will go to Governor Katie Hobbs.

Notably, Hobbs has a mixed record on crypto. On May 7, she signed HB 2749, allowing the state to hold unclaimed crypto and set up a reserve fund without using taxpayer money. The fund may also grow through staking rewards or airdrops.

Hobbs vetoed two other crypto bills in May. One aimed to allow the state treasurer to invest public funds in Bitcoin, while the other sought to establish a broader digital assets reserve fund. Hobbs cited market volatility and the risk to public funds in her veto letters. If HB 2324 passes the House, Arizona could become one of the first states to build a reserve using seized crypto.

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