Arizona Passes HB2324 for Crypto Reserve; Hobbs to Decide

Arizona’s House of Representatives has passed a new law called House Bill 2324 (HB2324). This bill will allow the state to create a special reserve for Bitcoin and other cryptocurrencies that are taken from criminals during investigations. It was passed by the Arizona Senate last Friday and is now waiting for Governor Katie Hobbs to decide if it will become a law or not.

The HB2324 bill would make it legal for Arizona to manage these seized digital assets under the state’s forfeiture laws. It also sets up modern ways to store and handle the currencies by using blockchain technology for secure access, hiring trusted third parties to hold the assets, or deciding whether to keep them in digital wallets or to sell them on licensed crypto platforms or hold onto them, depending on market trends.

If the governor signs, the legislation would be the state’s second law creating a crypto reserve, after a previous bill (HB2749) that Governor Hobbs approved, which set up a Bitcoin fund using unclaimed property. This initiative highlights that Arizona is carefully but steadily embracing cryptocurrencies. The state also focuses on managing seized assets rather than directly investing in them.

Governor Katie Hobbs has rejected two earlier bills (SB1373 and SB1025) that wanted Arizona to directly buy and invest in Bitcoin, saying it was too risky due to Bitcoin’s price swings. So far, she has only approved one crypto-related law, HB2749, which created a small fund for digital assets that were unclaimed, like lost or abandoned crypto.

The new bill, HB2324, is different because it only deals with crypto taken from criminals, which matches Hobbs’ preference for safer, less risky crypto policies.

Whether HB2324 becomes law or not depends totally on whether Hobbs will sign it or not. If she does, Arizona would become a leader in managing seized crypto, like other states such as Texas and New Hampshire.

The bill’s modern rules for securely storing crypto by using blockchain technology could also serve as an example for other states in the US and globally. It will also make it easier and clearer to handle cryptocurrencies in criminal cases.