Arizona's Senate revives bill seeking to create reserve fund from seized crypto

Arizona's lawmakers have revived a bill that would establish a reserve fund administered by the state to store and manage seized crypto assets.

The bill, dubbed HB 2324, passed the Senate on Thursday in a 16-14 vote, moving it to the House for further consideration, according to the legislature's website. 

The legislation previously failed a final read at the House in May and was returned to the Senate for amendments, its latest fact sheet said.

Specifically, if enacted, the bill would authorize the State Treasurer to establish the Bitcoin and Digital Assets Reserve Fund to manage crypto assets seized through criminal asset forfeiture. It would allow the state government to invest, reinvest, and divest funds in crypto assets or exchange-traded funds containing digital assets.

The legislation also spells out terms on the allocation of funds from the sales of forfeited crypto assets. The proceeds would be distributed in tiers: the first $300,000 would go to the Anti-Racketeering Revolving Fund. If the sale exceeds that amount, the remaining balance would be split — 50% to the same fund, 25% to the state's General Fund, and 25% to the newly established Bitcoin and Digital Assets Reserve Fund.

The bill also outlines procedures for securing lawfully seized digital assets, requiring authorities to either obtain access credentials such as a private key or passphrase, secure a digital wallet, or transfer it to a state-approved digital wallet or platform.

Arizona has taken steps to examine crypto-related legislation, enacting a separate cryptocurrency reserve bill, HB 2749, last month. HB 2749 focuses on unclaimed crypto assets presumed abandoned, while HB 2324 addresses crypto assets obtained through forfeiture. The state is also reviewing several other bills focused on crypto security, kiosks, and payments.

At the federal level, the U.S. Senate passed the landmark GENIUS stablecoin bill on Tuesday, which now moves to the House for further consideration. President Trump has called on the House to swiftly pass the GENIUS Act, describing it as essential to securing America's position as the "undisputed leader" in crypto assets.