Arizona Establishes Fund for Seized Cryptocurrency Assets

The Arizona House of Representatives has passed a bill, HB 2324, aimed at establishing a reserve fund for confiscated crypto assets.

The bill has been sent to Governor Katie Hobbs for approval after receiving the Senate’s endorsement.

This initiative empowers the state treasurer to create a reserve fund consisting of bitcoin and other digital currencies. It will manage cryptocurrencies seized during criminal investigations.

The fund will have the capability to invest in, reinvest, and sell digital assets or exchange-traded funds (ETFs) based on those assets.

Furthermore, the legislation outlines how proceeds from the sale of confiscated assets will be allocated. The first $300,000 will be allocated to a Revolving Fund for Combatting Racketeering, with any amount exceeding this limit to be divided accordingly.

HB 2324 marks Arizona’s second foray into cryptocurrency legislation. Last month, the state approved HB 2749, which effectively creates a reserve of unclaimed digital assets.

It’s worth noting that in May, Hobbs vetoed a bill, SB1025, which would have allowed the treasurer and pension funds to invest up to 10% of their assets in digital currencies such as bitcoin.