Illustration symbolizing the revival of Arizona's Bitcoin Reserve Fund legislation.
The Arizona Senate has revived House Bill 2324, proposing a Bitcoin and Digital Assets Reserve Fund with a narrow 16-14 vote. Initially rejected by the House, the bill’s approval reflects a divided opinion among lawmakers on cryptocurrency management. If passed, it would broaden Arizona’s forfeiture laws to include digital assets, allowing for the seizure of cryptocurrencies with no identifiable owners. The measure now heads back to the House for a final vote, amidst ongoing legislative exploration of cryptocurrency regulations in the state.
Arizona – The Arizona Senate took a significant step on Monday by reviving House Bill 2324, which aims to establish a Bitcoin and Digital Assets Reserve Fund. The bill, which had previously failed to pass in the House, received a narrow approval from the Senate in a 16-14 vote, largely along party lines. The lone dissenting Republican vote came from Jake Hoffman.
The revival of House Bill 2324 comes after its rejection during a third reading in the House on May 7. Senator Jane Shamp, a Republican, spearheaded the motion to reconsider the bill. Under legislative procedures, only lawmakers who initially voted against a bill can call for its reconsideration. With the Senate’s approval, the measure now heads back to the Arizona House for a final vote among its 60 members.
For House Bill 2324 to pass the House, it will need a majority vote, which requires at least 33 members, primarily Republicans, to support it. Should it achieve a majority, the bill would enable the Attorney General’s office to receive an initial allocation of $300,000 from forfeited digital assets. Any amounts exceeding this threshold will be distributed with 50% going to the Attorney General, 25% to the state’s general fund, and the remaining 25% directed towards the new digital assets reserve fund.
The implications of this bill are profound, as it broadens Arizona’s existing forfeiture laws to include provisions for digital assets. This means the state will have the ability to seize digital currencies from individuals who are deceased, deported, fled, possess immunity, or abandoned the property, provided there is no identifiable owner. This legislative move has stirred various opinions among lawmakers regarding the management and investment in cryptocurrencies.
The activation of House Bill 2749, signed into law on May 7 by Governor Katie Hobbs, allows Arizona to retain unclaimed crypto assets without burdening taxpayers. This legislation further facilitates the creation of a Bitcoin reserve fund and permits state custodians to stake cryptocurrencies to earn rewards or receive airdrops, which can subsequently be added to the reserve fund.
However, Governor Hobbs has expressed caution regarding cryptocurrency investments. She previously vetoed Senate Bill 1025, which sought to allow the state treasurer to invest up to 10% of state funds in Bitcoin, citing the potential risk to retirement funds posed by untested investments. Additionally, she rejected Senate Bill 1373, designed to establish a “Digital Assets Strategic Reserve Fund,” arguing that the current volatility in the crypto market renders it unsuitable for state financial involvement.
The revival of HB 2324 demonstrates Arizona’s ongoing exploration of cryptocurrency legislation, reflecting a landscape of conflicting opinions among lawmakers about the viability and risks of trading and investing in digital assets. As the measure progresses back to the House, the outcome remains uncertain, with both supporters and critics weighing in on the state’s direction regarding digital currencies.
As Arizona navigates the complexities of cryptocurrency legislation, the response from the House could shape the future framework for managing digital assets within the state. Observers will be watching closely as the vote unfolds, determining the fate of the proposed reserve fund initiative.
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