Arizona Senate Stuns with Bitcoin Bill Revival: Decisive Final Vote Imminent

In a move that's rattled both crypto advocates and traditional finance skeptics, the Arizona Senate has resurrected its controversial Bitcoin bill—setting the stage for a high-stakes final vote.

Why now? The resurgence comes as institutional adoption hits record highs, leaving legislators scrambling to either embrace or regulate the digital gold rush.

Wall Street's worst nightmare? A state-level end-run around federal inertia. Arizona's play could force other states to pick sides in the crypto cold war—while bankers clutch their pearls (and spreadsheets).

One thing's certain: win or lose, this vote will send shockwaves far beyond the Copper State. Tick tock, legacy finance.

TLDR

• Arizona lawmakers revived House Bill 2324 after it had previously failed in the House.
• The Senate passed the revived bill in a narrow 16–14 vote.
• HB2324 aims to create a Bitcoin and Digital Assets Reserve Fund managed by the state treasurer.
• The bill outlines custody options, including state wallets, licensed exchanges, or retaining assets in native form.
• Arizona plans to invest the fund’s assets in digital currencies or crypto ETFs.

Arizona lawmakers have revived and advanced House Bill 2324, aiming to create a Bitcoin reserve under state management. The proposal returned after failing an earlier House vote, and now awaits final approval. Arizona continues refining its approach to crypto, while tensions remain over its role in state finance.

Arizona Senate Revives Bitcoin Reserve Bill

Arizona legislators reintroduced HB2324 through procedural motions, which allowed its second passage in the Senate by a 16–14 margin. The bill, introduced in February, previously passed the Senate but stalled in the House. Lawmakers now await a final House vote to determine its future.

HB2324 outlines the creation of a bitcoin and Digital Assets Reserve Fund, managed by the Arizona State Treasurer. The fund will handle digital assets seized through criminal forfeiture and establish new custody standards. Arizona intends to use state-approved wallets, licensed exchanges, or asset retention based on market and security factors.

The legislation also revises existing forfeiture laws in Arizona to include cryptocurrencies and introduces custodial standards for digital assets. The proposal includes blockchain-based access protocols and certified third-party custodians.

Lawmakers Outline Crypto Asset Use Plan

Arizona’s proposed law introduces a structured distribution model for proceeds from digital asset sales. According to the proposed fund structure, the first $300,000 WOULD be directed to the Attorney General’s Office. Any additional revenue would be split, with 50% going to the Attorney General and the remainder split between the state general fund and the reserve.

The reserve fund could invest in crypto assets and ETFs, and Arizona would receive earnings from those investments. Depending on policy decisions, these earnings would be reinvested or returned to the general fund. Lawmakers emphasized the fund’s potential to generate revenue without raising taxes.

Arizona lawmakers included three asset-handling strategies to address storage, liquidity, and long-term growth. These options ensure flexibility in reacting to security or market changes. Arizona plans to balance safety with the ability to convert assets quickly if needed.

Previous Crypto Bills Met Mixed Results

Arizona previously passed HB2749, establishing a separate Bitcoin and Digital Assets Reserve Fund from non-forfeiture sources like staking and airdrops. Governor Katie Hobbs signed that bill into law in May, making it Arizona’s first active Bitcoin reserve legislation. It reflects growing interest in blockchain-based finance within Arizona governance.

Other digital asset bills did not survive, including Senate Bill 1025 and Senate Bill 1024, which Governor Hobbs vetoed. Those proposals included authorizing crypto payments and treasury investments in Bitcoin.