Catenaa, Tuesday, July 1, 2025-Arizona House of Representatives passed a bill last Tuesday to establish a state-managed cryptocurrency reserve fund using assets seized in criminal cases.
The legislation now awaits Governor Katie Hobbs’ signature.
House Bill 2324 cleared the chamber with a 34-22 vote, reviving a proposal that failed earlier in May. The bill would create a “Bitcoin and Digital Assets Reserve Fund,” overseen by the state treasurer and sourced solely from confiscated digital assets such as Bitcoin and stablecoins.
The measure expands Arizona’s forfeiture statutes to explicitly cover virtual currencies, introducing new procedures for seizure, secure storage, and sale of these assets.
It designates the first $300,000 in proceeds for the Attorney General’s office, with the remainder split between the state’s general fund and the new reserve.
If signed into law, this would mark Arizona’s second major crypto legislation this year. In May, Hobbs signed HB 2749, permitting the state to retain unclaimed crypto in its original form and redirect staking rewards to public funds.
Hobbs, however, has rejected broader crypto adoption measures. She previously vetoed SB 1025, which would have allowed up to 10% of treasury and pension assets to be invested in Bitcoin, citing volatility concerns.
Despite her reservations, the House’s approval reflects growing bipartisan support for leveraging digital assets to modernize state finances. The bill’s future now rests with the governor.
