Arizona Senate revives Bitcoin Reserve Fund bill

[umair]

Arizona lawmakers have reignited efforts to establish a state-managed Bitcoin reserve fund after the Senate narrowly revived House Bill 2324 with a 16–14 vote. Originally rejected in early May, the bill now heads back to the House, where a majority vote is needed to pass it to the governor’s desk. If approved, it would allow Arizona to manage seized cryptocurrencies via a new “Bitcoin and Digital Assets Reserve Fund.” The first $300,000 of seized digital assets would go to the Attorney General’s office, while the remainder would be split: 50% to the AG, 25% to the state’s general fund, and 25% to the reserve fund.

This move is part of Arizona’s broader push to modernize its handling of unclaimed digital assets. Earlier this year, the governor signed a related law allowing the state to retain unclaimed crypto without using taxpayer dollars. HB 2324 would extend this by permitting the state to either hold or sell seized crypto assets in legally compliant ways. Critics argue that hanging onto volatile assets could be financially risky, but supporters see it as an innovative way to leverage crypto for public benefit without dipping into traditional funds.

The legislation also highlights partisan tensions: the Senate revival vote fell nearly strictly along party lines, with one Republican in opposition. If finalized, HB 2324 would position Arizona among the first U.S. states to build an official crypto reserve fund—potentially setting a precedent that could inspire other states to follow suit.

Question for Discussion:
Should states hold seized cryptocurrencies as strategic reserve assets, or would liquidating them immediately better serve public interests?