Arizona will cover cryptocurrency management on its legislative agenda, along with progress on a project that proposes managing digital assets seized by the state as investments. The initiative, identified as HB 2324, has gained the necessary support in the Senate and is now being evaluated by the House of Representatives.
The proposal aims to create a state fund in Bitcoin (BTC), managed by Arizona treasurer. I am responsible for protecting and managing cryptocurrencies seized for criminal activity. Additionally, it allows states to invest in crypto-active or linked funds.
The project also establishes how resources obtained through seized cryptocurrency sales will be distributed. The first $300,000 collected will be allocated to state funds that fund shares for fear tor and other crimes.
Next, if the total total exceeds that amount, it shows that the surplus is split as follows: 50% will go back to the same initiative, 25% will go to the general state budget and the remaining 25% will go to the new reserve system of Bitcoin and digital assets.
To ensure the safety of these assets, the law makes it clear that in order for the authority to access the digital portfolio, the authority must obtain the necessary credentials, such as private keys and recovery phrases.
As reported by Cryptonotics, in recent months, Arizona has shown interest in regulating the use of cryptocurrencies and gaining a position in these assets. In early May, the state approved a law centered on abandoned digital assets being billed and not considered.
but, Arizona’s path to state adoption of Bitcoin is not exempt from obstacles. Gov. Katie Hobbs rejected the SB1025 project. This proposed to approve investments of up to 10% of public funds in BTC and other digital assets. Officials argued that the high volatility of these devices represents the risk of sensitive resources such as retirement funds.
At the same time, at the federal level, this week The US Senate has approved the Genius Actan initiative aimed at strengthening the country’s position in absurd markets. Proposals that have support from President Donald Trump must be appreciated by the House of Representatives.