Arizona senate revives Bitcoin reserve bill after reconsideration vote

One of Arizona’s Bitcoin reserve bills has been revived after the state’s Senate passed a motion to reconsider the bill on Thursday.

House Bill 2324 was initially voted down in the House during its third reading on May 7, but is now headed back to the chamber for reconsideration after the Senate voted 16-14 in favor of the measure.

The bill would allow the state to create a “Bitcoin and Digital Assets Reserve Fund” to manage forfeited digital assets. It is one of several crypto bills that the state’s lawmakers have reviewed in recent months.

The Senate’s reconsideration vote for the Republican-backed bill went almost entirely along party lines, with Republican Jake Hoffman the sole member of his party to vote against the bill. 

Only a legislator who originally voted against the bill can file a motion to reconsider — in this case, it was Republican Senator Jane Shamp.

Source: Bitcoin Laws

HB 2324 must receive a majority vote from the 60 Arizona House members — 33 of which are Republicans — for it to be sent to Governor Katie Hobbs’ desk for approval.

Bill to split Bitcoin reserve funds between departments

If HB 2324 passes, the first $300,000 worth of digital assets in a criminal forfeiture would head to the Attorney General’s office.

Then, any amount over that would be split 50% with the Attorney General, 25% to the state general fund and 25% to the new digital assets reserve fund, the bill states.

The bill, sponsored by Republican Senator Jeff Weninger, would also expand Arizona’s forfeiture laws to include digital assets, establishing provisions for their seizure, storage and allocation. 

Arizona would be able to seize digital assets from individuals who are deceased, deported, fled, have been granted immunity or have abandoned the property, provided the state can prove that no known owner exists, that diligent efforts were made to identify one and that no one has claimed legal ownership.

Arizona Governor has signed a Bitcoin bill

Governor Hobbs signed HB 2749 into law on May 7, which allows the state to keep unclaimed crypto and establish a Bitcoin reserve fund that won’t use any taxpayer money or state funds.

The state’s custodians can stake the crypto to earn rewards or receive airdrops, which can then be deposited into what Arizona has called a “Bitcoin and Digital Assets Reserve Fund.”

Hobbs vetoes two crypto bills

Another Bitcoin reserve bill that reached Hobbs’ desk was Senate Bill 1025, which proposed the creation of the Arizona Strategic Bitcoin Reserve Act (2025) and would have allowed the state treasurer to invest up to 10% in Bitcoin and potentially other crypto assets.

However, Hobbs vetoed the bill on May 2, citing concerns that retirement funds shouldn’t be exposed to “untested investments like virtual currency.”

Governor Hobbs’ letter explaining her decision to veto SB 1025. Source: State of Arizona Office of the Governor

Hobbs also vetoed SB 1373 on May 12, which aimed to create the “Digital Assets Strategic Reserve Fund.”

“Current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars,” Hobbs stated in her veto letter. “I have already signed legislation this session which allows the state to utilize cryptocurrency without placing general fund dollars at risk.”