Arizona revives bid for seized crypto reserve fund through House Bill 2324

Arizona lawmakers are revisiting a antecedently rejected measure that would let the authorities to negociate a reserve money built from seized cryptocurrencies.

House Bill 2324 failed successful an earlier House ballot but is backmost successful question pursuing a constrictive 16–14 Senate decision connected June 19.

This determination returns the measure to the Arizona House for a last reading. If it secures bulk support, it volition caput to Governor Katie Hobbs for approval.

Bill details

House Bill 2324 outlines a model for creating a “Bitcoin and integer assets reserve fund,” which would beryllium funded wholly by crypto confiscated successful transgression investigations.

These integer assets would beryllium sold connected state-approved crypto exchanges oregon akin platforms to guarantee just marketplace pricing and afloat transparency. However, the measure permits immoderate integer assets to stay successful their autochthonal signifier if needed.

The archetypal $300,000 proceeds from each forfeiture would beryllium deposited into Arizona’s Anti-Racketeering Revolving Fund. Any magnitude exceeding that would beryllium divided arsenic follows: 50% to the aforesaid anti-racketeering fund, 25% to the state’s wide fund, and 25% to the recently projected Bitcoin and integer assets reserve fund.

The measure mandates safeguarding seized assets utilizing a secure, state-controlled integer wallet. This retention indispensable beryllium managed by authorized unit to forestall loss, theft, oregon unauthorized access. The measure besides limits its scope to integer assets forfeited done the Attorney General’s office.

Additionally, HB 2324 modernizes Arizona’s plus forfeiture laws by formally defining however integer assets are treated successful transgression cases. It besides provides guidelines for protecting guiltless third-party owners whose spot whitethorn person been unknowingly utilized successful amerciable activity.

Arizona’s crypto regulatory efforts

HB 2324 reflects a broader inclination successful Arizona’s increasing engagement with crypto legislation.

Since 2020, the authorities lawmakers person introduced much than a twelve blockchain-related bills, covering everything from reserve strategies to integer plus custody rules.

Some of these bills person since go laws, with the astir caller allowing the authorities to claim ownership of dormant crypto aft 3 years of inactivity.

The instrumentality besides permits the authorities to involvement those tokens oregon enactment successful airdrops, redirecting net into nationalist funds.

Despite this progress, Governor Hobbs has expressed caution successful the past. She vetoed a erstwhile connection for a Strategic Bitcoin Reserve, citing concerns implicit volatility and a deficiency of proven utility.

The station Arizona revives bid for seized crypto reserve money done House Bill 2324 appeared archetypal connected CryptoSlate.