Arizona’s legislature is revisiting a major crypto-related proposal that could shape how the state handles seized digital assets. House Bill 2324, which was originally rejected in the House on May 7, has been brought back to life after the Senate voted 16-14 in favor of reconsideration. If the bill passes, Arizona would establish a Bitcoin and Digital Assets Reserve Fund, primarily funded by digital assets confiscated during criminal investigations.
How the Bitcoin Reserve Fund Would Work
Under the proposed legislation, the first $300,000 in seized cryptocurrency would be directed to the Arizona Attorney General’s office. Any additional amount would be divided equally among three recipients: the Attorney General’s office, the state’s general fund, and the new Digital Assets Reserve Fund.
The bill also proposes to expand Arizona’s existing laws, allowing the state to seize and hold digital assets not just from convicted criminals, but also from individuals who are deceased, deported, or otherwise untraceable. This provision would significantly broaden the state’s reach in managing unclaimed or forfeited crypto.
Governor Hobbs Supports Cautious Crypto Integration
Governor Katie Hobbs has already shown a willingness to engage with digital asset policy—though carefully. She recently signed HB 2749 into law, a measure that allows Arizona to retain unclaimed cryptocurrency and collect staking or interest rewards from it, all without using taxpayer funds.
However, Hobbs has also vetoed two other crypto-related bills, citing concerns over the volatility of digital markets. Despite those rejections, she remains open to crypto legislation that promotes secure and responsible adoption.
As House Bill 2324 heads back to the House for a second vote, Arizona may be positioning itself as a pioneer in state-level crypto asset management—one step closer to integrating digital currencies into its financial infrastructure in a controlled, strategic manner.
