Arizona state won’t buy Bitcoin – But is happy to seize and hold it

HB 2324 heads to the governor’s table aft House vote, establishing a U.S. first: a state-run Bitcoin reserve funded wholly by forfeited integer assets

The Arizona House of Representatives passed House Bill 2324 connected Tuesday, approving authorities to make the archetypal Bitcoin reserve successful the United States funded solely done seized integer assets. The 34–22 vote, with 4 members not voting, sends the measure to Governor Katie Hobbs, who present has 5 concern days to motion oregon veto it.

If enacted, the measurement would presumption Arizona arsenic a nationalist pioneer, chiseled from New Hampshire and Texas, which precocious approved their ain state-level Bitcoin reserves utilizing nationalist funds. Arizona’s version, by contrast, would draw exclusively from integer assets forfeited successful transgression investigations, making it the country’s archetypal “seized-assets-backed” Bitcoin reserve.

No Taxpayer Exposure

Under HB 2324, the archetypal $300,000 from each integer plus forfeiture would spell to the Arizona Attorney General’s office. The remainder would beryllium split: 50% to the AG, 25% to the state’s General Fund, and 25% into the recently created Bitcoin reserve, a model explicitly defined successful the legislation.

The reserve indispensable beryllium held successful a state-approved, unafraid integer wallet. While the measure does not mandate yearly audits, it does restrict however assets tin beryllium liquidated.

Any merchantability oregon conversion of Bitcoin indispensable hap done “state-approved cryptocurrency exchanges oregon different unafraid platforms,” according to the measure text. However, determination is nary explicit request for case-by-case legislative oregon enforcement support for liquidation.

Tuesday’s ballot came 5 days aft the Arizona Senate narrowly passed the measurement 16–14. With House concurrence present secured, the measure advances to Gov. Hobbs, who has until July 1 to act.

Setting a Precedent

The measure makes Arizona the 3rd U.S. authorities to authorize a Bitcoin reserve, but the archetypal to bash truthful without immoderate payer outlay.

While the measure drew beardown Republican support, it besides won attraction from crypto-focused argumentation groups similar Satoshi Action Fund, which is progressive successful assisting states successful adopting Bitcoin.

For fiscal conservatives, the exemplary is appealing arsenic a mode to physique hard-asset reserves insulated from ostentation and national fiscal risks. For crypto advocates, it marks different milestone successful normalizing Bitcoin arsenic a strategical nationalist asset, akin to gold.

Will Hobbs Sign?

Governor Katie Hobbs has not indicated whether she plans to motion oregon veto HB 2324. In May, she rejected a broader, taxpayer-funded Bitcoin reserve (SB 1025), calling it “premature” and raising concerns implicit custodial risk.

However, she signed HB 2749 aboriginal that aforesaid month, authorizing Arizona to clasp unclaimed integer property, including crypto, suggesting a perchance softer stance erstwhile the authorities isn’t straight allocating funds.

Senator Wendy Rogers, a vocal protagonist of the bill, emphasized the value of integrating Bitcoin into Arizona’s fiscal strategy, advocating for measures that bolster the state’s fiscal presumption without expanding taxes.

Arizona instrumentality grants the politician 5 concern days, excluding Sundays, to enactment connected a measure erstwhile it is transmitted. If nary enactment is taken by July 1, HB 2324 volition automatically go law.

What Comes Next

If the measure is enacted, the authorities volition request to finalize its custody model earlier deposits begin. While nary authoritative timeline has been announced, depending connected regulatory implementation and plus forfeiture proceedings, the archetypal contributions of seized crypto could feasibly statesman successful precocious 2025.

Several different states are exploring akin ideas. Formal Bitcoin-reserve bills person already been filed successful Missouri (HB 1217), Wyoming (HB 0201), and Oklahoma (HB 1203), though nary person yet been signed into law.

For now, Arizona stands acceptable to go the archetypal U.S. authorities to physique a sovereign Bitcoin reserve funded wholly by seized integer assets, not by taxpayers. This would beryllium a ineligible and symbolic displacement from the models seen successful New Hampshire and Texas.

The station Arizona authorities won’t bargain Bitcoin – But is blessed to prehend and clasp it appeared archetypal connected CryptoSlate.