Arizona Senate Revives Bitcoin Reserve Bill After Narrow Vote

Highlights:

• After passing the Senate, Arizona has revived the Bitcoin reserve bill.
• The bill includes a plan involving the seizure of crypto storage and distribution.
• Reserve funds could be invested in Bitcoin or crypto ETFs.

A major Bitcoin reserve bill has been revived by Arizona legislators after passing a close vote in the Senate 16-14. In May, the bill failed a vote in the House but was returned with procedural reconsideration. It is now waiting for a final vote in the Arizona House of Representatives.

Advertisement

The law suggests the creation of a category of state-controlled Bitcoin and Digital Assets Reserve Fund. In case it is passed, Arizona would be allowed to keep and control seized digital assets of criminal forfeiture. Additionally, the fund would operate under the treasurer’s office of the state, and it would handle crypto assets obtained by legal seizures.

🇺🇸 ARIZONA Update:

'Bitcoin Reserve' bill HB2324, which initially failed, has been revived after a 'motion to reconsider'.

The bill would create a fund out of digital assets seized via criminal asset forfeiture.

It passed the Senate today 16-14, and is now in the House. pic.twitter.com/FKmLr8kSmJ

— Bitcoin Laws (@Bitcoin_Laws) June 19, 2025

New Provisions for Digital Asset Handling

HB 2324 brings about new measures of storing, selling, and securing digital assets. In addition, the bill lists three solutions that have been approved by the state. Assets can be stored within governmental digital wallets or sold through licensed exchanges. Moreover, they can be kept in their original form as per the risks and security observed in the market.

It also amends the criminal forfeiture laws in the state of Arizona to add digital assets directly. This amendment permits the state to confiscate crypto on a legal basis when it involves abandonment, immunity or deportation. There are clear legal mechanisms governing the way the unclaimed or ownerless assets turn into the property of the state.

In the bill, Arizona also outlines its procedure for distributing the proceeds of the seized digital assets as a part of ensuring transparency. The original $300,000 would be topped up to the office of the Attorney General. Any funds beyond that would be divided 50% to the AG, 25% to the general fund of the state, and 25% to the reserves fund.

Bitcoin Reserve Bill Expands State Strategy

HB 2324, in contrast with earlier proposals, does not depend upon taxpayer funds and direct appropriations. The Bitcoin reserve bill is an expansion of a previous proposal, House Bill 2749, which was signed into law on May 7. The bill was adopted to enable the state to continue holding specific crypto and receiving rewards available through staking and airdrops.

🇺🇸 Arizona Update:

HB 2749 has been signed into law, technically creating AZ's first crypto reserve.

It doesn't allow investment, but moves unclaimed assets, airdrops, and staking rewards into a reserve.

IMPORTANT: Shows Gov. Hobbs is willing to enact pro-crypto legislation pic.twitter.com/BeTRdD8GlD

— Bitcoin Laws (@Bitcoin_Laws) May 8, 2025

The current bill is expanded in terms of the scope of the enforcement tools, investment options, and a wider range of custodial regulations. The reserve fund can either invest in crypto ETFs or hold digital assets so that it can earn revenue on behalf of the state. Furthermore, the bill introduces a flexible system of management of digital assets owned by the state.

The vote by the Senate, which divided 16 to 14, was largely party polarized. One of the Republicans broke ranks to vote against the bill. Motions of reconsideration are only made by legislators who were initially in opposition to a bill. This kind of rule saw the bill being reintroduced into the Senate and now to the House.

Arizona Faces Mixed Results on Crypto Legislation

Though this has been an advancement, other new crypto bills have had opposition. Two suggestions were turned down in May by Katie Hobbs, the governor. One would have permitted up to 10% of treasury and pension resources to be invested in crypto. The other was to establish a strategic crypto reserve based on appropriation of the legislation.

Hobbs disagreed with the idea of subjecting the public retirement systems to the unpredictable terms of their digital markets. She, however, signed into law HB 2387, which is consumer protection based on crypto ATMs in Arizona. The mixed decisions demonstrate the risk-averse but proactive strategy of the state regarding crypto regulation.

Advertisement