Arizona lawmakers are taking another swing at establishing a state-run reserve fund for cryptocurrency assets seized through criminal investigations. The proposed legislation, House Bill 2324 (HB 2324), narrowly passed the state Senate on Thursday in a 16-14 vote and now heads back to the House for further review.
HB 2324 aims to create the Bitcoin and Digital Assets Reserve Fund, a special account managed by the Arizona State Treasurer. The fund would store, manage, and invest cryptocurrency assets obtained through asset forfeiture in criminal cases. This includes permission for the state to invest in cryptocurrencies directly or through exchange-traded funds (ETFs) that hold digital assets.
The bill had previously failed a final vote in the House back in May but was sent back to the Senate for revisions. With its latest version now passed, it has another shot at becoming law.
A key feature of the legislation is how it proposes to allocate proceeds from the sale of forfeited crypto assets. The first $300,000 would be directed to Arizona’s Anti-Racketeering Revolving Fund. Any amount beyond that would be split: 50% would still go to the Anti-Racketeering Fund, while the remaining half would be divided equally between the state's General Fund and the newly proposed reserve fund.
HB 2324 also outlines strict procedures for handling seized digital assets, including requirements for securing private keys or passphrases and using approved digital wallets or platforms for storage.
This isn't Arizona's only move in the crypto space. Last month, lawmakers passed HB 2749, which focuses on unclaimed crypto assets considered abandoned. The state is also actively considering other cryptocurrency-related legislation, including bills covering digital security, crypto kiosks, and payments.
Meanwhile, on the federal stage, the U.S. Senate recently passed the GENIUS Act, a landmark bill aimed at regulating stablecoins. It now awaits action in the House. Former President Donald Trump has urged swift passage, framing the bill as crucial to maintaining U.S. dominance in the crypto sector.
