Arizona’s legislature has taken a major step toward integrating Bitcoin into state finance with the passage of House Bill 2324. Approved by a 34–22 vote on Tuesday, the bill authorizes the creation of a state-managed “Bitcoin and Digital Assets Reserve Fund” funded by confiscated cryptocurrencies. The bill now awaits Governor Katie Hobbs’ signature to become law.
Unlike other crypto initiatives, this proposal does not require taxpayer funds or direct investment. Instead, it reallocates digital assets seized during criminal investigations into a treasury reserve overseen by the state treasurer. If enacted, Arizona would become one of the first U.S. states to use forfeited crypto assets for public finance purposes.
Bill Defines Crypto Seizure and Distribution Protocols
House Bill 2324 also updates Arizona’s asset forfeiture framework to explicitly include digital currencies such as Bitcoin, stablecoins, and other virtual tokens. It establishes a clear protocol for seizing, holding, and liquidating these assets.
Under the new structure, the first $300,000 from any seizure is earmarked for the Attorney General’s office to support law enforcement operations. Any proceeds beyond that are to be divided between the state’s general fund and the new Bitcoin reserve.
The bill faced initial resistance, having failed in a final House vote in May. However, it was revived through procedural motions and eventually passed the Senate by a narrow 16–14 vote before returning to the House for final approval.
Governor Hobbs Faces Another Crypto Policy Test
Governor Katie Hobbs, a moderate on digital asset regulation, now holds the decision on whether the bill becomes law. Her record shows mixed views: she previously vetoed Senate Bill 1025, which would have allowed the state to invest up to 10% of treasury and pension funds directly into Bitcoin. She also blocked Senate Bill 1373, which proposed a broader crypto reserve funded by both seizures and legislative allocations.
Still, Hobbs has not rejected crypto outright. She recently signed House Bill 2387, which enforces tighter controls on crypto ATMs to combat fraud and money laundering. With House Bill 2324 now in front of her, Hobbs must decide whether to advance Arizona’s approach to digital assets through this indirect funding model.
Quick Facts
- Arizona’s House passed HB 2324 to create a Bitcoin reserve using seized crypto assets.
- The first $300,000 from any seizure will go to the Attorney General’s office for enforcement.
- Proceeds beyond that are split between the general fund and the new reserve.
- Governor Katie Hobbs, who has vetoed past crypto investment bills, must now decide whether to sign it into law.
