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Arizona continues its bold move towards crypto. It has just adopted a new law that could redefine the public management of digital assets. The state is indeed preparing to create a state reserve funded exclusively by crypto-assets seized during criminal investigations. We’ll tell you more in the next paragraphs!
In brief
Arizona creates a public reserve funded by cryptocurrencies seized during criminal investigations.
The new crypto law strictly regulates the management, investment, and distribution of funds derived from wrongdoing.
A groundbreaking crypto law adopted by majority vote
On June 24th, the Arizona House of Representatives voted 34 to 22 in favor of Bill HB 2324. Already approved by the Senate a few days earlier, this text aims to establish a fund named “Bitcoin and Digital Assets Reserve Fund.” It will be entirely financed by crypto-assets confiscated during corruption proceedings.
This crypto reserve would be managed by the State Treasurer, who can invest or resell the funds according to market conditions. The law indeed specifies a strict distribution of the profits from cryptocurrency sales:
the first $300,000 will be transferred to the state’s anti-racket fund.
The remaining amount will be split: 50% for this same fund, 25% for the general budget, and 25% for the new crypto reserve.
A controversial and strategic decision
This text is part of a series of crypto legislative proposals in Arizona. Some have recently been blocked by Governor Katie Hobbs. For example, she vetoed a project aiming to invest up to 10% of public pensions in Bitcoin.
However, Hobbs shows measured openness towards the cryptography sector. Proof of this: she approved in May the HB 2749 law. This law authorizes the custody of unclaimed digital assets in their native form as well as the redirection of crypto staking earnings towards public funds.
With HB 2324, Arizona is thus trying an original bet:
to profit from digital crime to strengthen its public reserves;
to establish an unprecedented legal framework for crypto asset management.
While most US states hesitate facing crypto, Arizona moves forward swiftly between legislative innovation and strict regulation. A strategy that could inspire other jurisdictions!
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My name is Ariela, and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago, but it is a universe that greatly interests me. The topics covered on the platform allow me to learn more. A singer in my spare time, I also cultivate a great passion for music and reading (and animals!)
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
