The Arizona House of Representatives has approved House Bill 2324 (HB2324), establishing a state-run Bitcoin and digital asset reserve fund funded exclusively by cryptocurrencies seized during criminal investigations. This follows prior legislation (HB2749) allowing the state to hold unclaimed crypto assets in their native forms and divert staking rewards to state funds.
HB2324 creates a legal framework covering the seizure, storage, and sale of digital assets such as Bitcoin and stablecoins, with the proceeds distributed among law enforcement, the state general fund, and the new digital asset reserve. The first $300,000 of forfeited digital assets are allocated to the Attorney General's office, with the remaining proceeds split between state coffers and the reserve fund.
This bill represents Arizona’s second digital asset reserve law in 2025 and marks a strategic shift from prior efforts that sought direct state investment in cryptocurrencies, which faced vetoes from Governor Katie Hobbs due to concerns about market volatility. Instead, HB2324 focuses solely on assets obtained through forfeiture, avoiding speculative investments by the state.
The legislation signals a measured approach toward integrating digital assets within state fiscal management and regulatory frameworks. Governor Hobbs’ decision to sign the bill remains awaited. Observers expect that the bill’s structure and restricted scope will address the Governor’s previous concerns, increasing the likelihood of her approval.
Arizona’s initiative reflects a broader trend of states experimenting with compliant and cautious cryptocurrency governance, balancing innovation with oversight and risk management. By leveraging seized assets, Arizona aims to responsibly expand its crypto policy framework without exposing state funds to direct market risks.