TLDR
Arizona Senate passes HB 2324 to manage seized crypto via new state reserve fund.
HB 2324 revives after May House rejection, now heads back for final legislative vote.
First $300K from seized crypto sales goes to Arizona’s Anti-Racketeering Revolving Fund.
Governor Hobbs previously vetoed similar crypto bills citing public fund risk concerns.
Arizona lawmakers have advanced a bill that could allow the state to manage and store digital assets seized during criminal investigations. House Bill 2324 (HB 2324) passed the Senate in a narrow 16-14 vote and now moves back to the House for final review. The bill would allow the creation of a new reserve fund for managing cryptocurrency seized through asset forfeiture cases.
The proposed law would authorize the Arizona State Treasurer to create a “Bitcoin and Digital Assets Reserve Fund.” This fund would be used to store, invest, and sell seized digital currencies, including through approved wallets and platforms.
Bill Revived After House Rejection
The legislation was initially introduced in February 2025 and moved through the Arizona legislature with early support. However, it failed a final House vote in May and was sent back to the Senate for amendments.
Lawmakers used procedural motions in both chambers to revive the bill. On June 19, the Senate approved the revised version, pushing it back to the House for further debate. If approved there, it will be sent to Governor Katie Hobbs for possible enactment.
The bill defines how digital assets obtained through criminal investigations should be handled, stored, or converted. It adds digital currencies like Bitcoin to the state’s forfeiture laws and sets rules for custody and liquidation.
Structure and Use of the Reserve Fund
Under the bill, proceeds from the sale of forfeited crypto assets will be distributed across multiple state funds. The first $300,000 will be deposited into the Anti-Racketeering Revolving Fund. Any amount above that will be split—50% to the same fund, 25% to the state’s General Fund, and 25% to the new Bitcoin and Digital Assets Reserve Fund.
The law would allow the state to reinvest or divest assets based on market and security conditions. The Treasurer will have the authority to manage these operations under state oversight.
To ensure proper handling, authorities must gain access to seized assets using private keys or secure passphrases. They may transfer assets into digital wallets approved by the state or retain them in native form, depending on the situation.
Governor’s Mixed Response to Crypto Laws
Governor Katie Hobbs has taken varied stances on crypto legislation. She recently signed House Bill 2749, which permits the state to manage unclaimed digital assets. This measure allows Arizona to hold such assets without liquidating them.
However, she vetoed two other crypto bills in May. One of them, Senate Bill 1373, also aimed to create a digital reserve fund using seized or appropriated assets but did not pass. Another vetoed bill, Senate Bill 1025, proposed investing state treasury and pension funds in digital assets. The Governor cited financial risks to public retirement systems as her reason for blocking the bill.
She has also signed House Bill 2387, which enforces new rules for crypto ATMs in the state. This measure focuses on consumer protection and regulatory compliance for digital asset kiosks.
Part of National Crypto Policy Trend
Arizona’s renewed focus on digital asset laws is part of a wider national trend. Since early 2025, many states have introduced crypto-related legislation. This activity follows federal developments, including the U.S. Senate’s recent approval of the GENIUS Act, a major stablecoin bill now pending in the House.
President Donald Trump has urged swift passage of the GENIUS Act. He called it necessary to help the U.S. lead in the global digital asset market. Arizona’s HB 2324 is one of several proposals aiming to align state-level regulations with emerging federal policies.
The final outcome of HB 2324 now depends on a vote in the Arizona House and, if passed, the Governor’s decision.
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