Arizona to Establish Fund for Seized Cryptocurrency

The Arizona House of Representatives has passed HB 2324, a bill to create a reserve fund for confiscated crypto assets.

The document has been sent to Governor Katie Hobbs for her signature, following approval by the state Senate.

The initiative grants the treasurer the authority to establish a reserve fund composed of Bitcoin and other digital assets. It will manage cryptocurrencies seized in criminal cases.

The fund will have the ability to invest, reinvest, and sell digital assets or ETFs based on them.

The bill outlines the distribution of proceeds from the sale of confiscated assets. The first $300,000 will be allocated to the Anti-Racketeering Revolving Fund. Amounts exceeding this limit will be divided as follows:

• 50% will go to the same fund;
• 25% to the state’s General Fund;
• the remaining 25% to the new Bitcoin and Digital Assets Reserve Fund.

HB 2324 is Arizona’s second cryptocurrency bill. Last month, the state passed HB 2749, which technically establishes a reserve of unclaimed digital assets in the state.

In May, Hobbs vetoed bill SB1025, which would have allowed the treasurer and pension funds to invest up to 10% of their funds in digital currencies like Bitcoin.