Arizona’s Push for Bitcoin Legislation

Arizona’s revived effort to incorporate Bitcoin into state finances is close to becoming law, pending a final signature.

The Arizona House of Representatives approved House Bill 2324 with a 34-22 vote on Tuesday, reviving a proposal that initially failed its final vote in May.

This legislation establishes a framework for the creation of a Bitcoin and Digital Assets Reserve Fund, which will be managed by the state treasurer and funded solely through digital assets seized in criminal investigations.

HB 2324 marks Arizona’s second digital asset reserve law this year, in addition to House Bill 2749, signed by Governor Hobbs in May. That law modified unclaimed property regulations, allowing crypto to be held in its native form and directing staking rewards into a state crypto fund.

The new bill revises Arizona’s forfeiture laws to explicitly cover digital assets, including Bitcoin, stablecoins, and other virtual currencies. It sets protocols for seizure, storage, and sale, with profits divided among law enforcement, the state general fund, and the new digital asset reserve.

The first $300,000 from any forfeited digital asset would go to the Attorney General’s office, while additional proceeds will be allocated between state funds and the reserve fund.

Lawmakers managed to revive HB 2324 last month through procedural motions after its final House vote failure on May 7. The Senate passed the amended measure narrowly with a 16-14 vote last Thursday, enabling Tuesday’s House vote.

Governor Hobbs has shown support for stricter oversight yet remains wary about exposing state funds to cryptocurrency markets. In May, she vetoed Senate Bill 1025, which would have permitted the investment of 10% of state treasury and pension funds in Bitcoin. She also blocked Senate Bill 1373, a proposal for a state-managed reserve for digital assets obtained through seizures or appropriations, citing market instability.

Meanwhile, Hobbs has signed bills focused on regulating the industry, such as House Bill 2387, which imposes stricter regulations on crypto ATMs to fight fraud and money laundering.

House Bill 2324 now places another significant crypto policy decision in the governor’s court.

Edited by Sebastian Sinclair