• Arizona approves the Bitcoin Fund by way of HB2324 invoices utilizing Seed Crypto somewhat than taxpayer cash.
• HB2324 avoids earlier veto by limiting the crypto reserve to legal forfeiture belongings.
• If it indicators the legislation, the invoice will mark Arizona’s second main crypto reserve legislation.

Arizona has enacted HB 2324, a invoice to create a Bitcoin and Digital Asset Reserve Fund, consisting solely of seized cryptocurrencies obtained by way of legal belongings forfeiture procedures. The invoice passes the Home of Representatives on June 24, 2025 with a 34-22 vote, following the Senate’s passage on June nineteenth with a 16-14 vote, and is in impact on the invoice awaiting a signature by Gov. Katie Hobbs.

The legislation makes use of solely state funds and funds acquired from legal circumstances on behalf of the Treasury Division to keep away from straight investments by taxpayers. This method avoids issues that Governor Hobbs rejected earlier Bitcoin Reserve payments, SB1373 and SB1025.

Second reserve fund after the unclaimed actual property legislation

If enacted, HB2324 will likely be Arizona’s second Bitcoin Reserve invoice following HB2749, which established an unclaimed actual property reserve fund. With the emphasis on the confiscation of legal belongings, the invoice is about separate from earlier proposals to extend the state’s funding potential in cryptocurrency. By counting on belongings already confiscated by legislation enforcement, the invoice avoids the political dangers related to taxpayers’ use of cash.

The invoice establishes safe custody practices similar to blockchain-based entry management, third-party custodian necessities, and the usage of state-validated digital wallets. Asset Administration provisions permit authorities to retain liquidated, liquidated or seized digital belongings by way of licensed cryptocurrency exchanges primarily based on market situations and strategic goals.

Gov. Hobbs raised issues earlier

Gov. Hobbs had raised issues about speculative investments utilizing taxes when rejecting earlier Bitcoin reserve proposals. The construction of HB2324 addresses such issues by establishing one other system that’s not associated to taxes or state funding insurance policies, and as a substitute is only primarily based on restoration of legislation enforcement belongings.

The forfeiture mannequin of legal belongings presents helpful mechanisms for coping with cryptocurrencies seized throughout investigations that legislation enforcement is more and more encountered. As an alternative of instantly liquidating digital belongings, the reserve fund can deliberately and professionally retain the recovered cash and tokens.

Legislation enforcement businesses are more and more encountering cryptocurrencies throughout legal investigations, together with cash laundering, drug trafficking and monetary fraud. The reserve fund permits for systematic dealing with of those belongings and avoids rushed liquidation that might restrict the state’s restoration worth.

HB 2324 outlines how confiscated cryptocurrencies are decentralized. The primary $300,000 will likely be directed to the Violence Measurement Inversion Fund. Any quantities extra will likely be break up as follows: 50% will proceed with the identical fund, 25% will likely be despatched to the state basic fund, and the remaining 25% will likely be allotted to the newly established Bitcoin reserve fund.

Associated: Texas Bitcoin Reserve protected by new legal guidelines. An funding choice from the governor is ready