Chairman of the Arizona House Commerce Committee Republican Rep. Jeff Weninger is shepherding a package of bills through the Legislature aimed at expanding the state’s footprint in blockchain and other digital assets.
Among his three bills which have all passed through committee include a proposal to create a statewide bitcoin and digital asset reserve fund for digital assets seized as part of criminal investigations, like money from illegal crypto enterprises.
Weninger says he wants to coordinate with the Attorney General’s Office.
“I want to have some conversations with them about, okay, how do we make sure that you have the resources to go after this when it's legitimate criminal activity,” Weninger said. “And how do we make sure also that the general fund gets some money that we might use for one time expenses. And we build up this strategic reserve for the future as well.”
Under his proposal, seized crypto funds would be sold, and the proceeds split between the state general fund, bitcoin and digital assets reserve fund, and the Attorney General’s Office.
The reserve fund would be administered by the state treasurer and used for storing, managing and allocating digital asset security.
Weninger stated that the victims of specific cryptocurrency crimes would receive restitution for their losses.
Weninger has also proposed expanding a state-run testing ground for financial products, first established under the AG’s Office in 2018.
The regulatory Fintech Sandbox program, which is overseen by the attorney general, enables individuals access to Arizona market data and product testing. The new bill and update to the program will allow for increased testing of financial products and continue to foster innovation for Arizona entrepreneurs.
Weninger’s final bill includes the establishment of a new Arizona Cryptocurrency and Blockchain Commission. The commission's goals aim to position Arizona as a leader in Blockchain technology and innovation and to increase its literacy and application in the workplace.
The commission will also look to appoint a crypto “czar” to lead cryptocurrency and Blockchain initiatives at the state level while coordinating initiatives at the federal level.
“Arizona is on the brink of becoming a national hub for blockchain and digital asset innovation,” Weninger said. “These bills represent our commitment to fostering an environment that not only embraces modern technology but also drives economic benefits across the state.”
