Arizona's "Bitcoin Reserve" bill revived, narrowly passed by the Senate, heading to the House for deliberation.

## Discussion resumes in Arizona

The Bitcoin reserve bill “HB2324,” which was once rejected in Arizona, has been revived by a motion for reconsideration and was narrowly passed in the Senate on the 19th with a vote of 16 to 14. The bill is currently awaiting discussion in the House and aims to establish a fund using virtual currencies seized during criminal investigations.

The bill stipulates the establishment of a reserve system for managing and holding virtual currencies acquired by the state through the confiscation of criminal assets. Of the confiscated virtual currencies, 50% will be allocated to the Attorney General’s office, 25% to the state general fund, and 25% to the newly established Bitcoin Digital Asset Reserve Fund for amounts exceeding $300,000.

The point of using seized Bitcoin and other cryptocurrencies as reserves is similar to the executive order on Bitcoin reserves that President Trump signed in March.

In May, Arizona Governor Katie Hobbs exercised veto power on 2 out of 3 cryptocurrency-related bills. In particular, “SB1373,” which would allow the holding of Bitcoin in state reserves and pension funds, was rejected due to market volatility.

This bill differs from previous proposals in that it utilizes already confiscated cryptocurrency rather than direct state investment. The cryptocurrency will be managed through a state-approved secure digital wallet system, and authorized personnel will establish a framework to prevent loss and theft.

In addition, the bill allows for flexibility in the timing of the sale and the form of holding of the seized virtual currencies, ensuring transparency through sales at state-approved exchanges. Like nine other states, Arizona has refrained from implementing a full-scale Bitcoin reserve, but the passage of this bill may bring about new developments.