Author
Sujha Sundararajan
Author
Sujha Sundararajan
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The Arizona Senate has passed a revised Bitcoin reserve bill, HB2324, which was initially turned down by the House on May 7. The bill cleared the chamber in a 16-14 vote, after the Senate passed a “motion to reconsider.”
The legislation is now moving to the House for further consideration, the bill’s website noted.
Per the legislature’s latest fact sheet, HB2324 would allow the State Treasurer to establish the Bitcoin Reserve Fund in order to manage crypto seized through criminal forfeiture.
Arizona Governor Katie Hobbs, a Democrat, has vetoed several bills since last year – the highest rate among U.S. governors. In May, she rejected the bill, citing concerns over risk.
Her rejection sparked criticism from Bitcoin advocates and some government officials. Wendy Rogers, who co-sponsored the bill, expressed her disappointment and pledged to reintroduce it in the next legislative session.
“Politicians don’t understand that Bitcoin doesn’t need Arizona. Arizona needs Bitcoin,” Rogers said at the time.
This is What the Bill Outlines
The Republican-backed bill came to the Senate’s reconsideration after entirely going through party lines. Republican Senator Jane Shamp filed the motion to reconsider, who originally voted against the bill.
The proposed legislation outlines three options for handling seized crypto assets. This includes storage in state-approved digital wallets, sale through licensed crypto exchanges or retaining in native form.
Further, the bill rolls out the allocation of funds obtained from the sales of forfeited digital assets. It proposes to allocate the first $300,000 to the Anti-Racketeering Revolving Fund. If the sale price exceeds $300K, the balance would be split — 50% to the same fund, 25% to the state’s General Fund, and 25% to the newly established BTC Reserve Fund.
Will the Bill be Enacted This Time Amid Rejections?
Notably, Governor Hobbs has already signed HB2749 into law, establishing a state-managed Bitcoin reserve fund that will hold unclaimed digital assets and staking rewards. With the signing in May, Arizona became the second US state to create a formal framework for holding crypto.
Meanwhile, the state is also reviewing other pro-crypto bills centering crypto security, kiosks, and payments.
Arizona Governor Hobbs has previously pointed to the current volatility in cryptocurrency markets for vetoing the legislation before. However, given BTC’s long-term bullish signal, there are high chances of upcoming BTC-friendly bill approvals.
Additionally, at the federal level, the stablecoin GENIUS bill passed the Senate with a majority of votes. President Trump showed his enthusiasm for the new legislation, calling it an “incredible bill.”
“Get it to my desk, ASAP — NO DELAYS, NO ADD ONS,” he wrote on Truth Social recently, adding that it is American brilliance at its best.
