Arizona Senate Revives Bitcoin Reserve Bill After Reconsideration Vote

On Thursday, the Arizona Senate successfully revived a Bitcoin reserve bill after a reconsideration vote. The bill, House Bill 2324, was initially voted down in the House during its third reading on May 7. However, the Senate's 16-14 vote in favor of the measure has sent it back to the House for reconsideration. The bill aims to establish a “Bitcoin and Digital Assets Reserve Fund” to manage forfeited digital assets, making it one of several crypto-related bills reviewed by Arizona lawmakers in recent months.

The Senate's vote on the Republican-backed bill was largely along party lines, with the sole Republican dissenting vote coming from Senator Jake Hoffman. The motion to reconsider was filed by Republican Senator Jane Shamp, who originally voted against the bill. For the bill to proceed to Governor Katie Hobbs' desk for approval, it must secure a majority vote from the 60 Arizona House members, 33 of whom are Republicans.

If HB 2324 is passed, the first $300,000 worth of digital assets from criminal forfeitures would be allocated to the Attorney General’s office. Any amount exceeding this would be split, with 50% going to the Attorney General, 25% to the state general fund, and 25% to the new digital assets reserve fund. The bill, sponsored by Republican Senator Jeff Weninger, also seeks to expand Arizona’s forfeiture laws to include digital assets, outlining provisions for their seizure, storage, and allocation. The state would be able to seize digital assets from individuals who are deceased, deported, have fled, been granted immunity, or have abandoned the property, provided the state can prove that no known owner exists and that diligent efforts were made to identify one.

Governor Hobbs recently signed HB 2749 into law, which allows the state to keep unclaimed crypto and establish a Bitcoin reserve fund without using taxpayer money or state funds. The state’s custodians can stake the crypto to earn rewards or receive airdrops, which can then be deposited into the “Bitcoin and Digital Assets Reserve Fund.”

Governor Hobbs has also vetoed two other crypto bills. Senate Bill 1025, which proposed the creation of the Arizona Strategic Bitcoin Reserve Act (2025) and would have allowed the state treasurer to invest up to 10% in Bitcoin and potentially other crypto assets, was vetoed on May 2. Hobbs cited concerns that retirement funds shouldn’t be exposed to “untested investments like virtual currency.” Additionally, SB 1373, which aimed to create the “Digital Assets Strategic Reserve Fund,” was vetoed on May 12. Hobbs stated that the current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars, noting that she had already signed legislation allowing the state to utilize cryptocurrency without risking general fund dollars.