Key Points:
- Arizona House passes HB 2324 to build a Bitcoin reserve using digital assets from criminal cases.
- The fund is structured to operate without touching taxpayer money.
- The final decision now rests with Governor Hobbs.
Arizona is once again making waves in the digital asset space. On June 25, the state’s House of Representatives passed HB 2324 in a 34–22 vote, giving green light to the creation of a Bitcoin and Digital Assets Reserve Fund without dipping into the taxpayer’s money. HB 2324 was initially rejected by the House on May 7th but was revived after Senator Jane Shamp filed a motion to reconsider. The Senate later passed it in a narrow 16-14 vote, mostly along party lines.
Instead, the fund will be fueled by crypto assets obtained through criminal proceedings, marking a bold pivot in how states interact with blockchain-based finance. If signed into law by Governor Katie Hobbs, HB 2324 would become Arizona’s second crypto reserve measure this year.
Under the bill, the first $300,000 in recovered digital assets would be directed to the Attorney General’s office. Any excess would be split: 50% to the Attorney General’s office, 25% to the state general fund, and 25% into the newly proposed reserve according to Bitcoin Laws.
HB 2324 also updates Arizona’s forfeiture laws to clearly cover Bitcoin, stablecoins, and other digital currencies. It outlines protocols for identifying unclaimed or abandoned assets including those from individuals who are deceased, deported, or have fled the country.
This isn’t Arizona’s first crypto move. In May, HB 2749 was signed into law, allowing the state to hold unclaimed crypto in its native form and collect staking rewards.
Still, Governor Hobbs has shown caution. Earlier this year, she vetoed a separate bill allowing state pension funds to allocate up to 10% into Bitcoin, citing financial risk.
Conclusion
With HB 2324, Arizona is signaling a growing interest in integrating crypto into state finance but Governor Hobbs’ signature remains the final piece. If approved, the Grand Canyon State could quietly become a pioneer in public crypto reserves.
