Arizona Makes History: House Passes Groundbreaking HB 2324 to Hold Bitcoin in State Reserves

Arizona just fired the starting gun in the race to adopt Bitcoin as sovereign treasury asset—and Wall Street didn’t see it coming.

The Bill That Could Reshape State Finance

The House-approved HB 2324 lets Arizona’s treasury allocate reserves to Bitcoin, sidestepping the Fed’s monetary monopoly. No more waiting for pension funds or corporates to lead—this is state-level adoption at warp speed.

Why This Hurts the Old Guard

Traditional banks now face competition from a decentralized protocol Arizona might soon treat like digital gold. Meanwhile, bond traders—still nursing 2023’s crypto PTSD—are scrambling to update their risk models.

The Cynic’s Corner

Of course, this could just be political theater. But try telling that to the Bitcoin miners already relocating to Phoenix for cheap energy and regulatory tailwinds.

One thing’s certain: when the next bull run hits, Arizona won’t be begging Wall Street for permission to participate.

Arizona could also claim abandoned digital assets

Under the terms of HB 2324, the first $300,000 in digital assets seized during a criminal forfeiture would go to the Attorney General’s office. 

Any value beyond that threshold would be divided so that 50 percent continues to the Attorney General, 25 percent moves into the state general fund, and the remaining 25 percent is deposited into the new reserve fund.

The bill, sponsored by Republican Senator Jeff Weninger, also broadens Arizona’s forfeiture statutes to cover digital assets. It lays out rules for seizing, storing, and allocating these assets. 

The state of Arizona could claim digital assets from individuals who are deceased, deported, have fled, have gained immunity, or have abandoned it. Of course, officials will have to prove that there is no known owner, that they made diligent efforts to find one, and that no one else has stepped forward to claim it.

Earlier this month, on May 7, Governor Hobbs also signed HB 2749 into law. That measure similarly permits Arizona to retain unclaimed cryptocurrency and form a Bitcoin reserve fund without tapping taxpayer dollars or state funds.

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