Arizona lawmakers are once again making headlines with their revived Bitcoin Reserve Bill. The proposal, which aims to create a state-managed fund for handling seized cryptocurrencies, has passed the Senate after a tight vote.
Now all eyes are on the House and the Governor, who has previously rejected similar crypto bills. But could this time be different?
Arizona Brings Back Bitcoin Bill
After a failed attempt earlier this year, Arizona lawmakers have brought back House Bill 2324, a proposal designed to create a Bitcoin and Digital Assets Reserve Fund. The bill, which cleared the Senate with a narrow 16–14 vote, now heads to the House for final approval.
If passed, it would allow the state treasurer to manage cryptocurrencies seized through criminal investigations.
Meanwhile, Arizona could store these assets in state-approved digital wallets, sell them through licensed crypto exchanges, or simply hold them based on current market or security conditions.
The bill also updates the state’s asset forfeiture laws to include digital assets, something that hasn’t been clearly defined before.
How Will the Funds Be Used?
Importantly, HB 2324 bill outlines a clear plan for distributing the money gained from selling seized crypto;
- The first $300,000 would go directly to the Attorney General’s Office.
- Any remaining funds would be split: 50% to the Attorney General, 25% to the state’s general fund, and 25% back to the reserve fund.
Previous Attempts and Governor Concerns
This isn’t Arizona’s first try at passing crypto-friendly laws. Earlier this year, two bills were signed into law, one for managing abandoned crypto assets and another for regulating crypto ATMs.
However, Governor Katie Hobbs has also vetoed two major crypto bills recently. As she believes the crypto market is too unstable for public funds. She noted that the state should avoid putting general fund money at risk.
Next Steps: Can the Bill Survive the Final Vote?
HB 2324 now moves to the House of Representatives, where it needs at least 31 votes to pass. If it clears the House, it will land on Governor Hobbs’ desk, and her decision could either boost Arizona’s crypto future or stall it once again.
If this revived bill clears the House and gets signed into law, it could set a new precedent for how state governments handle digital assets.
