Arizona House Clears Bitcoin and Digital Assets Reserve Bill, Awaits Final Sign-Off

Highlights:

• The Arizona House approved HB 2324, aiming to establish a BTC and Digital Assets Reserve Fund.
• HB 2324 lets the state manage crypto seized during criminal investigations and invest it.
• Funds from seized crypto sales are split among anti-racketeering, general, and reserve funds.

Arizona’s plan to add Bitcoin to state funds is now just one signature away from becoming law. On Tuesday, the House passed House Bill 2324 with a 34-22 vote, bringing back a proposal that had failed earlier in May. The bill grants the state permission to establish a “Bitcoin and Digital Assets Reserve Fund.” This fund will be overseen by the state treasurer and will consist of cryptocurrencies seized during criminal investigations. The bill would also let the state invest, reinvest, or sell these crypto assets or exchange-traded funds (ETFs) that hold digital assets.

🇺🇸 JUST IN: Arizona passes 'Bitcoin Reserve' bill HB2324.

The bill creates a reserve for assets obtained through criminal asset forfeiture.

If signed by Governor Hobbs, it will be the state's second second reserve bill passed into law. pic.twitter.com/0OlT01LtZp

— Bitcoin Laws (@Bitcoin_Laws) June 25, 2025

Arizona’s Second Crypto Reserve Law

If signed into law, HB 2324 would become Arizona’s second law focused on creating a crypto reserve. The first, HB 2749, was passed last month, which allows the state to claim unclaimed crypto and create a Bitcoin reserve fund without using taxpayer or state money. It also allows staking of these crypto assets to earn rewards or receive airdrops, which will be added to Arizona’s new “Bitcoin and Digital Assets Reserve Fund.”

🇺🇸 Arizona Update:

HB 2749 has been signed into law, technically creating AZ's first crypto reserve.

It doesn't allow investment, but moves unclaimed assets, airdrops, and staking rewards into a reserve.

IMPORTANT: Shows Gov. Hobbs is willing to enact pro-crypto legislation pic.twitter.com/BeTRdD8GlD

— Bitcoin Laws (@Bitcoin_Laws) May 8, 2025

In comparison, HB 2324 specifically targets crypto assets that are taken through criminal forfeiture. The bill allows the state to handle digital assets the same way it does other seized property. Introduced by Republican Senator Jeff Weninger, it expands Arizona’s forfeiture laws to include cryptocurrencies and other digital assets.

HB 2324 explains how to use money from selling seized crypto. The first $300K from selling seized crypto goes to the Anti-Racketeering Revolving Fund. Anything over that is split—50% to the same fund, 25% to the state’s General Fund, and 25% to the new Bitcoin and Digital Assets Reserve Fund.

Governor Hobbs Supports Stronger Regulation but Avoids State Fund Risks

Governor Hobbs has shown support for stronger regulation but is cautious about risking state funds in crypto. In May, Hobbs rejected Senate Bill 1025 (SB 1015), known as the Arizona Strategic Bitcoin Reserve Act, which sought to allow up to 10% of state treasury and pension funds to be invested in BTC.

JUST IN: 🇺🇲 ARIZONA Governor Katie Hobbs has VETOED the State's Strategic Bitcoin Reserve Bill.

"Arizonan's retirement funds are not the place for the state to try untested investments like virtual currency." pic.twitter.com/0Yhded9f7B

— Fiat Archive (@fiatarchive) May 3, 2025

She also vetoed SB 1373 on May 12, a proposal to create a Digital Assets Strategic Reserve Fund. It would have let the treasurer hold and invest crypto from seizures or state money. In her veto message, Hobbs said the current instability in crypto markets may not be suitable for general fund use. She also pointed out that she had already approved measures allowing the state to engage with cryptocurrency without risking general fund money.

Meanwhile, Hobbs approved bills to regulate the crypto industry, including House Bill 2387, which enforces tougher rules on crypto ATMs to fight fraud and money laundering. House Bill 2324 now places another key crypto policy decision with the governor.