The Arizona House of Representatives passed House Bill 2324, creating a state-run Bitcoin and Digital Assets Reserve Fund funded through seized cryptocurrencies. The bill authorizes the first $300,000 from seized cryptos to be allocated to the Attorney General, with remaining funds divided between the state and the reserve. This legislation follows a prior bill signed in May that enables the state to hold unclaimed cryptocurrencies in their native forms and direct staking rewards into a state fund. Arizona's Senate previously passed an amended version of this bill, which explicitly covers digital assets in the state’s asset forfeiture laws, establishing protocols for their seizure, storage, and sale. The passage of HB 2324 represents Arizona's ongoing efforts to incorporate cryptocurrencies into state financial practices, with an emphasis on managing digital assets obtained through criminal proceedings. Governor Katie Hobbs has already vetoed other legislative pushes to invest state funds directly into cryptocurrencies, indicating a cautious approach toward the financial stability of Arizona's investments.

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