In brief
- The Arizona House passed HB 2324, creating a state-run Bitcoin and digital asset reserve funded through seized crypto.
- The bill establishes rules for the seizure, storage, and sale of digital assets obtained in criminal investigations.
- It follows HB 2749, signed in May, which allows Arizona to hold unclaimed crypto in its native form and divert staking rewards to a state fund.
Arizona’s revived push to bring Bitcoin into state coffers is one signature away from becoming law.
The Arizona House of Representatives approved House Bill 2324 on Tuesday in a 34-22 vote, reviving a measure that failed its first final vote in May.Â
The legislation creates a framework for Arizona to establish a “Bitcoin and Digital Assets Reserve Fund” that would be managed by the state treasurer and funded exclusively through digital assets seized in criminal investigations.
HB 2324 would mark Arizona’s second digital asset reserve law this year, joined only by House Bill 2749, which Governor Hobbs signed in May.Â
That law changed unclaimed property regulations to allow crypto to be held in native form, with staking rewards diverted into a state crypto fund.
HB 2324 further amends Arizona’s forfeiture laws to explicitly cover digital assets, including Bitcoin, stablecoins, and other virtual currencies.
It establishes protocols for seizure, storage, and sale, with proceeds divided between law enforcement, the state general fund, and a new digital asset reserve.
The first $300,000 from any forfeited digital asset would be directed to the Attorney General’s office, with additional proceeds split between state coffers and the reserve fund.
Lawmakers revived HB 2324 last month through a series of procedural motions after it failed a final House vote on May 7.Â
The Senate passed the amended measure by a narrow 16-14 margin last Thursday, clearing the way for Tuesday’s House vote.
Governor Hobbs’ record shows support for stricter oversight, but hesitation toward exposing state funds to crypto markets.
In May, Hobbs vetoed Senate Bill 1025, the Arizona Strategic Bitcoin Reserve Act, which would have allowed up to 10% of state treasury and pension funds to be invested in Bitcoin.Â
She also blocked Senate Bill 1373, a proposal to create a state-managed reserve for digital assets obtained through seizures or legislative appropriations, citing market instability.
At the same time, Hobbs has signed bills aimed at regulating the industry, including House Bill 2387, which imposes stricter rules on crypto ATMs to combat fraud and money laundering.
House Bill 2324 now puts another major crypto policy decision in the governor’s hands.
Edited by Sebastian Sinclair
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