Arizona Continues Towards Establishing an Official Bitcoin Reserve Fund
The Arizona Senate voted to revive a previously rejected bill aimed at establishing a state-managed Bitcoin reserve fund, expanding the potential integration of cryptocurrency into the state's public financial system. This decision clearly demonstrates Arizona's ambition to become a leading blockchain and cryptocurrency investment center in the United States.
Bill HB 2324, previously rejected in the third session of the House on May 7, was reconsidered and passed by the Senate in a narrow 16-14 vote on Thursday. Subsequently, the bill will return to the House for another voting round to expand the cryptocurrency-based financial strategy.
Bitcoin Reserve Fund Proposal and Public Policy Impact
HB 2324 proposes establishing a "Bitcoin and Digital Asset Reserve Fund" to manage digital assets recovered from criminal seizures. Introduced by Republican Senator Jeff Weninger, the bill is part of the state's strategy to regulate and integrate cryptocurrencies like Bitcoin, Ethereum, and other Tokens into institutional public policy.
The policy is expected to distribute 50% of seizures exceeding $300,000 to the Attorney General, 25% to the general fund, and the remaining 25% to the newly established reserve fund. These regulations aim to maximize benefits and minimize legal investment risks for the state.
In the decisive vote, Republicans were predominant, with the sole exception of Senator Jake Hoffman opposing the bill. To be approved, the bill requires a simple majority in the House of 60 members, including 33 Republicans, before being sent to Governor Katie Hobbs for final approval.
Governor Hobbs Draws Cryptocurrency Strategy Boundaries
Governor Hobbs has clearly defined her stance on cryptocurrency in her policies. On May 7, she signed HB 2749, allowing the state to retain unclaimed cryptocurrencies and establish a Bitcoin reserve fund without relying on the state's general budget. She permitted Staking and Airdrop activities, along with recording all profits into the reserve fund.
However, she rejected two other crypto bills in May. SB 1025, intended to establish the "Arizona Strategic Bitcoin Reserve Legislative Fund," would have allowed the state to invest up to 10% of its currency reserves in cryptocurrency. She was concerned about the high market volatility and risks to the general budget.
In her rejection letter, she emphasized: "The current volatility of the cryptocurrency market is not suitable for general reserves." Another bill, SB 1373, aimed at building a Digital Asset Reserve Fund, was also rejected a few days later.
In the new draft law, HB 2324 also updates Arizona's asset recovery law to include digital assets under certain conditions such as deceased ownership, deportation, or inability to identify ownership through reasonable efforts. This opens significant opportunities to strengthen the state's legal framework protecting cryptocurrency-related activities.
The final voting process in the House will determine whether Arizona will continue to be one of the leading crypto states in the United States. This is a strategic development in an increasingly competitive landscape of digital asset-based financial policy models.
