As the saying goes, “One man’s trash is another man’s treasure,” and this is what has happened in the state of Arizona. Well, it’s not exactly trash we’re talking about; it’s more like many men’s seized crypto is the government’s treasure reserve. Arizona state lawmakers have now revived a bill that could turn state-seized crypto into a proper crypto reserve.
The bill, named HB2324, initially ran through the Senate but was rejected on May 07, 2025. However, thanks to the bill being passed in the Senate on Thursday, and Republican Senator Janae Shamp, who moved the motion, it now has another shot at life. In fact, it was passed in a 16-14 vote.
🇺🇸 ARIZONA Update:
— Bitcoin Laws (@Bitcoin_Laws) June 19, 2025
'Bitcoin Reserve' bill HB2324, which initially failed, has been revived after a 'motion to reconsider'.
The bill would create a fund out of digital assets seized via criminal asset forfeiture.
It passed the Senate today 16-14, and is now in the House. pic.twitter.com/FKmLr8kSmJ
Although not a landslide, the bill would now have to be reconsidered, and this has been confirmed on the legislature’s website.
It is understood that the bill was largely supported by Republican Senators, and Republican Jack Hoffman was the only member of the Grand Old Party to oppose it. According to the latest facts sheet from the House, the bill was filed earlier because it needed certain amendments. The aim of the Bill is to create what has been called a “Bitcoin and Digital Assets Reserve Fund.” This reserve fund will be set up to specifically manage crypto assets seized through criminal forfeiture.
If Bill HB 2324 is eventually passed, it would authorize the State Treasurer to create this fund and allow the state government to invest, reinvest, and divest funds in crypto assets or exchange-traded funds that contain digital assets.
But that’s not all there is to the bill. Apparently, it also contains a formula for all proceeds from the fund. The first $300,000 is to go the Anti-racketeering Revolving Fund. Any surplus is to be split, with 50% going to the ARRF, 25% to the state’s General Fund, and then the last 25% to the newly established Bitcoin and Digital Assets Reserve Fund.
What else is in the bill? It also outlines the procedures the government will take to secure lawfully seized digital assets. According to the content of the bill, the authorities are to obtain access credentials like a private key or passphrase, and then secure a digital wallet, before transferring it to a state-approved digital wallet or platform.
Is Arizona The Most Crypto-Friendly State?
The Arizona Senate has already enacted a separate crypto reserve bill, even with this current one. Bill HB2749, the already enacted one, was enacted last month. Unlike this one, which deals with seized crypto assets, HB 2749 focuses on unclaimed crypto assets that have been presumed abandoned by their owners.
Arizona Governor Katie Hobbs signed HB 2749 on May 7th, which allows the state to build a Bitcoin reserve without the need to use taxpayer funds. Despite her friendly demeanor regarding HB 2749, the governor has already vetoed two other crypto legislations, including SB1025, a bill that proposed investing 10% of state funds in crypto. According to Hobbs, they were too risky.
Although the state of Arizona already has the two HB bills on crypto, it is reportedly still considering several other bills focused on crypto security, kiosks, and payments. Apparently, the state cannot get enough crypto, and whether that is a good or bad thing remains to be seen. But state-seized crypto is free money; why say no to that?
Jordan V.
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