Bill would allow courts to order forfeiture of digital assets and create a state bitcoin and digital assets reserve fund

House Bill 2324, as discussed at the caucus, would permit a court to order forfeiture of digital assets if a person is convicted of an offense and would create a Bitcoin and digital assets reserve fund.

The Senate amendment clarifies that the court’s authority applies only to digital assets owned by a convicted person and used in, traceable to, or acquired through the commission of an offense. The amendment also specifies that proceeds from the sale of seized digital assets would be deposited into the Anti-Racketeering Revolving Fund rather than into a fund administered directly for the attorney general.

Israel (member) summarized the bill and said the sponsor had not yet indicated whether they would concur with the Senate amendment. Members asked questions about how the new fund would be administered and the current practice for seized funds; Israel said the new Bitcoin and digital assets reserve fund would be administered by the state treasurer while proceeds would flow into a new fund structure rather than directly to the attorney general, and he said he would obtain further information on current practice.

Representative Sandoval asked whether proceeds would go to the treasurer’s office; Israel said the Bitcoin and digital assets reserve fund is a newly created fund and clarified that forfeiture proceeds related to digital assets would be placed into that fund. Representative Aguilar said the attorney general’s office has been seizing and using such funds and that another actor (Whittaker) is attempting to redirect those funds to the treasurer’s office; the transcript records a recommendation to take detailed follow-up outside caucus to clarify.