Arizona’s Senate has passed a bill to create a bitcoin reserve

What’s new? By a vote of 16 to 14, the Arizona Senate passed bill number HB 2324, which would allow for the establishment of a state-run cryptocurrency fund. It has now been sent to the House of Representatives for further consideration.

Information on the Legislature’s website

What else is known? The bill previously failed to pass final reading in the House in May and was returned to the Senate for amendments, according to a fact sheet.

If passed, the bill would authorize the state treasurer to create a reserve fund based on bitcoin and other digital assets for the management of confiscated assets by law enforcement from criminals. It would allow the state government to invest in cryptocurrency assets or exchange-traded funds (ETFs) based on them.

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The legislation also outlines the terms of distribution of funds from the sale of confiscated crypto assets: the first $300 000 will go to an anti-racketeering fund, if the sale amount exceeds this threshold, the balance will be split, 50% to the same fund, 25% to the state’s general fund, and 25% to the bitcoin and digital assets reserve fund.

The document also regulates the process of storing legally seized digital assets, requiring authorities to obtain credentials such as a private key or seed phrase, or transfer them to a state-approved digital wallet or platform.

Last month, Arizona passed HB 2749, a bill that focuses on unclaimed crypto assets. The state is also considering several other bills focusing on cryptocurrencies, crypto ATMs, and payments.

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Also in May, Arizona Governor Katie Hobbs vetoed two bills that would have expanded the use of digital assets in the state: bill 1373 would have created a strategic digital asset reserve fund, while 1025 would have allowed up to 10% of state treasury and pension funds to be allocated to BTC or other digital assets.

At the federal level, the US Senate passed the landmark GENIUS stablecoin bill on Tuesday, which now goes to the House of Representatives for further consideration.

Trump has called for the swift passage of GENIUS, calling it necessary to cement the US position as the “undisputed leader” in crypto assets.