Arizona Senate Revives Bitcoin Reserve Bill After Reconsideration Vote

The bill's revival comes after a dramatic legislative turnaround. House Bill 2324 (HB 2324) initially failed a final vote in the House in early May. However, it was brought back to life through a procedural move known as a “motion to reconsider,” filed by a senator who had originally voted against it. This allowed the Senate to vote again, narrowly passing the measure.

Fund Structure and Asset Distribution

If approved again by the House, the legislation would allow the state treasurer's office to receive and manage seized digital assets. The bill specifies that the first $300,000 of value from forfeited assets goes to the Attorney General's office.

Any remaining proceeds 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 also expands Arizona's forfeiture laws to explicitly include digital assets and outlines custodial and security requirements for handling them.

Previous Legislative Efforts

This bill (HB 2324) focuses specifically on assets seized in criminal cases. It should not be confused with a separate, related bill that has already been signed into law, which deals with unclaimed or abandoned crypto from dormant accounts.

The legislative session has seen a flurry of crypto-related activity. Governor Hobbs recently vetoed two other bills that would have allowed the state to invest public funds directly into Bitcoin, citing volatility risks. The revival of HB 2324 shows that while the state is cautious about direct investment, it is still actively seeking ways to manage digital assets it acquires through other means.

The renewed consideration comes amid wider state-level efforts to define frameworks for digital asset management under criminal forfeiture.