Arizona Revives Bitcoin Bill for Digital Asset Reserve Fund

Arizona's legislative efforts to integrate Bitcoin and digital assets into state policy have gained renewed momentum with the revival of House Bill 2324. The bill, which initially faced defeat in the Arizona House on May 7, was brought back for review following a Senate vote. The motion to reconsider the legislation was filed by Republican Senator Janae Shamp, who had previously opposed the bill. This procedural step is necessary for the bill to be reconsidered.

The bill aims to establish a "Bitcoin and Digital Assets Reserve Fund" to manage criminally forfeited digital assets. The proposed allocations include directing the first $300,000 of assets to the Attorney General’s office, with any excess amount split 50% to the Attorney General, 25% to the state’s general fund, and 25% to the new reserve fund. Sponsored by Republican Senator Jeff Weninger, the bill also seeks to expand the state’s asset forfeiture laws to explicitly include digital assets. It outlines scenarios under which Arizona could seize digital assets, such as cases involving deceased or deported individuals, fugitives, or where ownership cannot be verified despite due diligence. The legislation now requires a majority vote in the 60-member Arizona House to proceed to Governor Katie Hobbs for final approval.

Governor Hobbs has shown a mixed approach to cryptocurrency legislation. On May 7, she signed HB 2749 into law, allowing the state to retain unclaimed digital assets and establish a reserve fund without using taxpayer money. Under this law, Arizona’s custodians can stake crypto holdings to earn rewards or receive airdrops, contributing additional resources to the fund. However, Hobbs vetoed Senate Bill 1025, which proposed allowing the state treasurer to invest up to 10% of state holdings in Bitcoin and other cryptocurrencies, due to concerns over exposing retirement and general fund assets to volatile digital investments. She also rejected SB 1373, which proposed a Digital Assets Strategic Reserve Fund, citing similar concerns about crypto volatility.

Ohio has also made significant strides in becoming one of the most crypto-friendly states in the US. The Ohio House of Representatives passed the Ohio Blockchain Basics Act (House Bill 116) in a 68-26 vote. The legislation, championed by Republican Representative Steve Demetriou, aims to simplify the use of cryptocurrencies for everyday payments and protect crypto mining operations from excessive government intervention. One of the bill’s core provisions is a tax exemption for cryptocurrency transactions under $200, with the threshold adjusting annually based on inflation. The bill also prohibits state agencies from creating rules that restrict residents from accepting cryptocurrency as payment.

The Ohio Blockchain Basics Act includes clear protections for crypto miners, allowing individuals to mine cryptocurrency in residential zones and enabling mining businesses to operate freely in areas zoned for industrial use. It also prevents the state from singling out crypto mining operations with laws that don’t apply to comparable industries. The bill specifies that people and businesses do not need a money transmitter license to engage in mining, staking, operating blockchain nodes, swapping one cryptocurrency for another, or developing decentralized applications. It further asserts that crypto mining and staking services should not be considered securities or investment contracts. The bill also gives Ohioans the right to self-custody their digital assets through hardware or self-hosted wallets without interference from the government.

In South Korea, progress is being made towards embracing cryptocurrency. The country may be open to launching a won-based stablecoin, but the central bank remains cautious due to concerns over foreign exchange management. Bank of Korea Governor Rhee Chang-yong acknowledged that issuing a stablecoin pegged to the Korean won could potentially make it easier for users to swap it for US dollar-backed stablecoins, which could complicate the central bank’s efforts to manage foreign exchange markets. The newly elected administration under President Lee Jae-myung is pushing forward with a pro-crypto regulatory framework. On June 10, the ruling Democratic Party introduced the Digital Asset Basic Act, designed to legalize stablecoin issuance for companies with at least $368,000 in equity capital. Under the proposal, issuers must maintain adequate reserves and get approval from the Financial Services Commission.

The Financial Services Commission is also conducting an investigation into local crypto exchanges, focusing on the transaction fees they charge users. This initiative is part of President Lee’s broader campaign promise to reduce trading costs and make crypto more accessible, particularly for younger investors. Globally, stablecoins are dominated by US dollar-backed assets, but the momentum behind non-dollar stablecoins is beginning to grow.