Nikolas Sargeant
The Arizona Senate has breathed new life into a controversial Bitcoin reserve bill, voting 16-14 on Thursday to send House Bill 2324 back to the state House for reconsideration. The legislation, which was initially defeated during its third reading on May 7, would establish a "Bitcoin and Digital Assets Reserve Fund" to manage forfeited cryptocurrency assets seized by the state.
The reconsideration vote fell almost entirely along party lines, with Republican Senator Jake Hoffman being the sole GOP member to oppose the measure. Republican Senator Jane Shamp, who originally voted against the bill, filed the motion to reconsider—a procedural requirement that only allows legislators who previously opposed a measure to request its revival. The bill now returns to the 60-member Arizona House, where it needs majority support from the Republican-controlled chamber.
If enacted, HB 2324 would create a tiered system for distributing forfeited digital assets. The first $300,000 in criminal forfeitures would go directly to the Attorney General's office, while amounts exceeding that threshold would be split three ways: 50% to the Attorney General, 25% to the state's general fund, and 25% to the new digital assets reserve fund. The legislation would also expand Arizona's existing forfeiture laws to include cryptocurrencies and establish procedures for seizing digital assets from deceased, deported, or fugitive individuals when no legal owner can be identified.
Arizona’s Crypto Regulations
The bill's revival comes amid a mixed reception for cryptocurrency legislation in Arizona. While Governor Katie Hobbs signed HB 2749 into law in May—allowing the state to retain unclaimed crypto without using taxpayer funds—she has vetoed two other Bitcoin-related measures. Both Senate Bill 1025, which would have permitted state investment of up to 10% in Bitcoin, and SB 1373, aimed at creating a strategic digital assets fund, were rejected due to concerns about exposing public funds to cryptocurrency volatility. The fate of the revived HB 2324 now depends on whether it can secure enough votes in the House before potentially reaching the governor's desk.
