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Arizona Governor Katie Hobbs has rejected House Bill 2324, a proposal intended to establish a reserve fund for managing crypto assets confiscated through criminal forfeiture.
Key Takeaways:
- The Arizona Governor has vetoed a bill that aimed to create a reserve fund for confiscated crypto assets.
- The initiative sought to empower the State Treasurer to invest or trade seized cryptocurrency.
- Texas has proceeded with its own Bitcoin reserve fund.
In a letter issued on Tuesday, Hobbs contended that the bill would deter local law enforcement from collaborating on digital asset seizures by transferring control of confiscated crypto assets away from local authorities.
The Arizona House narrowly approved HB 2324 last week with a 34-22 vote.
Arizona Bill Aimed for State Oversight of Seized Crypto Assets Reserve
The initiative aimed to grant the State Treasurer oversight of the Bitcoin and Digital Assets Reserve Fund, enabling the state to invest or trade crypto assets acquired from criminal cases, including through exchange-traded funds that contain digital assets.
Earlier in May, Arizona enacted HB 2749, becoming the second U.S. state to implement a crypto reserve law.
This legislation focuses on managing unclaimed cryptocurrency considered abandoned, while HB 2324 specifically addressed assets confiscated from criminal activities.
Meanwhile, Arizona legislators are still considering other crypto-related measures, such as SB 1062, which would recognize cryptocurrencies as legal tender within the state.
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Arizona’s action occurs as several U.S. states retract efforts to create a strategic Bitcoin reserve.
In May, Florida became the latest state to abandon crypto legislation, joining others like Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma.
On a more favorable note, last month, Texas Governor Greg Abbott enacted Senate Bill 21 into law, establishing a state-funded Bitcoin reserve, the first of its kind in the nation.
In contrast to similar initiatives in Arizona and New Hampshire, Texas is developing a separate reserve fund that is entirely independent of the state treasury.
The fund will be managed by Texas Comptroller Glenn Hegar and aims to investigate Bitcoin as a strategic asset class.
“We can buy land, we can buy gold; I think the state of Texas should have the option of evaluating the best performing asset over the last 10 years,” stated bill author Senator Charles Schwertner.
Momentum Grows for Bitcoin Adoption as Treasury Asset
As reported, in the past week, at least nine firms in the UK, ranging from web design startups to mining companies, have announced intentions to acquire Bitcoin or disclosed recent purchases to incorporate the cryptocurrency into their corporate treasuries.
Among the UK companies, AI services provider Tao Alpha revealed plans to raise £100 million following the announcement of a bitcoin treasury strategy that sparked investor interest.
Smarter Web Company, a small website design firm, experienced its market value surge from £4 million to over £1 billion in just two months after revealing its Bitcoin acquisitions in April, although shares have since stabilized.
In the U.S., Anthony Pompliano’s ProCap BTC purchased 3,724 Bitcoin for $386 million as part of its strategy to go public through a SPAC merger, while Japan’s Metaplanet raised $517.8 million on the first day of its ambitious “555 Million Plan,” which aims for 210,000 Bitcoin by 2027.
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