One of Arizona’s Bitcoin reserve measures has been reinstated after the Senate of the state passed a motion to reevaluate the proposal on Thursday.
House Bill 2324 was originally dismissed in the House during its third reading on May 7, but is now set to return to the chamber for reevaluation after the Senate voted 16-14 in support of the initiative.
The legislation would permit the state to establish a “Bitcoin and Digital Assets Reserve Fund” to oversee forfeited digital assets. This is one of multiple crypto proposals that the lawmakers in the state have analyzed in recent months.
The Senate’s reevaluation vote for the Republican-endorsed bill followed almost strictly party lines, with Republican Jake Hoffman being the only member of his party to oppose the measure.
Only a lawmaker who initially voted against the measure can submit a motion to reevaluate — in this instance, it was Republican Senator Jane Shamp.
For HB 2324 to be presented to Governor Katie Hobbs for endorsement, it must achieve a majority vote from the 60 members of the Arizona House — 33 of whom are Republicans.
Proposal to divide Bitcoin reserve funds among departments
If HB 2324 is approved, the initial $300,000 in digital assets from a criminal forfeiture would be allocated to the Attorney General’s office.
Any amount exceeding that would be divided with 50% awarded to the Attorney General, 25% directed to the state’s general fund, and 25% directed to the newly created digital assets reserve fund, as outlined in the bill.
The proposal, promoted by Republican Senator Jeff Weninger, would also broaden Arizona’s forfeiture regulations to encompass digital assets, establishing guidelines for their seizure, storage, and distribution.
Arizona would have the authority to confiscate digital assets from individuals who are deceased, deported, have fled, have received immunity, or have abandoned the assets, provided the state can demonstrate that no recognized owner exists, that thorough attempts were made to identify one, and that no one has asserted legal ownership.
Arizona Governor has ratified a Bitcoin measure
Governor Hobbs approved HB 2749 into law on May 7, which enables the state to retain unclaimed crypto and establish a Bitcoin (BTC) reserve fund that will not utilize any taxpayer funds or state resources.
The custodians of the state can stake the crypto to generate rewards or receive airdrops, which may then be deposited into what Arizona has termed a “Bitcoin and Digital Assets Reserve Fund.”
Hobbs vetoes two cryptocurrency measures
Another Bitcoin reserve proposal that landed on Hobbs’ desk was Senate Bill 1025, which sought to create the Arizona Strategic Bitcoin Reserve Act (2025) and would have permitted the state treasurer to invest up to 10% in Bitcoin and potentially other crypto assets.
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However, Hobbs vetoed this bill on May 2, expressing concerns that retirement funds shouldn’t be exposed to “untested investments like virtual currency.”
On May 12, Hobbs also vetoed SB 1373, which aimed to establish the “Digital Assets Strategic Reserve Fund.”
“The current fluctuations in cryptocurrency markets do not present a prudent option for general fund assets,” Hobbs remarked in her veto correspondence. “I have already sanctioned legislation this session that permits the state to utilize cryptocurrency without jeopardizing general fund dollars.”
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