The Arizona Senate has passed legislation establishing a state-managed Bitcoin and Digital Assets Reserve Fund.
The bill, House Bill 2324 (HB 2324), was approved in a narrow 16-14 vote. Its purpose is to manage cryptocurrencies seized through criminal forfeiture proceedings.
Under HB 2324, the state treasurer will be authorized to oversee the fund’s operations. This includes securely storing seized digital assets, liquidating them through licensed exchanges, or retaining them based on market conditions.
The move reflects Arizona’s ongoing legislative focus on cryptocurrency regulation. The state has introduced several crypto-related bills in recent years, covering areas like abandoned digital assets and consumer protections for crypto ATMs, while rejecting proposals deemed riskier, such as direct state investment in digital assets.
Proponents argue HB 2324 will enhance transparency and efficiency in handling seized cryptocurrencies, addressing challenges posed by asset volatility and custody complexities.
The passage of HB 2324 could potentially encourage other states to adopt similar frameworks, promoting more standardized practices for the custody and liquidation of seized digital assets.