Arizona Senate Passes HB2324 to Create State Bitcoin Reserve Fund
Arizona’s Senate approved HB2324 by a 16-14 vote, advancing the creation of a State Bitcoin Reserve Fund. The bill updates digital asset forfeiture laws, allowing the State Treasurer to hold seized cryptocurrencies—chiefly BTC—in state-approved wallets, sell them via licensed exchanges, or retain them in native form. Sales proceeds first replenish the Anti-Racketeering Revolving Fund up to $300,000; excess funds split 50% back to that fund, 25% to the General Fund, and 25% to the new Bitcoin Reserve Fund. This move follows the earlier HB2749, which treated unclaimed crypto as unclaimed property, and contrasts with a vetoed predecessor that proposed direct BTC investments. If the House approves, Arizona will become one of the first states to formalize a Bitcoin Reserve Fund, potentially influencing digital asset forfeiture policy and market sentiment.
Neutral
In the short term, HB2324 is unlikely to exert significant price pressure on BTC since it formalizes the handling of seized coins rather than triggering large-scale market buys or sells. Traders should expect minimal volatility directly tied to this regulatory change. Over the long term, establishing a State Bitcoin Reserve Fund could lend additional institutional credibility to BTC and signal more robust state-level crypto frameworks. Such developments may support gradual bullish sentiment around Bitcoin’s regulatory acceptance without causing abrupt market swings.