Arizona lawmakers have brought back the discussion on HB2324, a bill that suggests creating a “Bitcoin and Digital Assets Reserve Fund”. This fund would use seized crypto – a digital money taken during criminal investigations. This bill was passed by a close 16-14 vote in the Senate on June 19, 2025, and will now go back to the House for another look.
This article breaks down the main points of the bill, what different people think about it, what would happen next, and how it might shape the future of Arizona crypto regulation.
What is Arizona’s Bitcoin Reserve Bill (HB 2324)?
In February 2025, Republican Jeff Weninger introduced HB 2324, a new law to manage digital assets like crypto when the state needs to take them over. It creates clear rules for:
- Taking crypto linked to criminal activity when no owner can be found.
- Storing it safely using state-approved wallets or licensed exchanges.
- Giving the state the choice to keep the assets in their original form instead of selling them right away.
When these digital assets are sold, the money is divided like this:
- The first $300,000 goes to the Arizona Attorney General’s Office.
- After that, 50% goes to the Attorney General, 25% to the state general fund, and 25% to a new Bitcoin & Digital Assets Reserve Fund.
The goal of HB2324 is to modernize how the state handles crypto assets, help law enforcement, and build a long-term digital asset reserve.
Why Arizona Is Pushing This Bill
- Increase in crypto-related seizures: As more people use digital assets, the police are finding and taking more crypto in crime-related cases.
- State asset governance: This fund helps Arizona safety store digital assets or earn money if their prices go up.
- Setting a legal standard: The bill creates clear rules for how digital assets should be handled by the state, which is important because crypto laws are still developing.
Where HB 2324 Stands Right Now
June 19: The senate voted 16-14 to bring HB2324 back for discussion.
Next: The bill goes back to the Arizona House of total 60 members. It needs at least 31 votes to move forward.
Then: If it passes the House, Governor Katies Hobbs will make the final decision about this bill.
Governor’s Track Record
Governor Katies Hobbs has taken a careful and balanced approach:
- Signed HB 2749 (May 7): This law allows unclaimed crypto to be kept in a reserve, without putting any burden on taxpayers.
- Signed HB 2387: This law adds protections for people using crypto-ATMs.
- Vetoed SB 1025: This bill would have let state pensions invest up to 10% in Bitcoin, but Hobbs rejected it because Bitcoin is still too risky.
Governor Hobbs has made it clear that she supports crypto initiatives that don’t use public funds and avoid putting taxpayer money at risk.
Supporters vs. Critics
| Supporters Say | Critics Worry |
| Helps manage modern assets better and gives clear legal rules | Volatility risk like crypto reserve can lose value fast |
| Brings money for law enforcement and government use | Would the state become a speculative investor? |
| Follows what others countries are doing (like Ukraine, El Salvador) | Lacks clear rules from the central government and unclear accountability |
What Happens Next?
- House Vote:
HB 2324 needs at least 31 votes in their favour in the House to pass.
- Governor’s desk:
If passed. It goes to Governor Hobbs. She will decide whether to approve it or not. Her recent comments show she might be careful unless more public support comes in.
- If signed into law:
- A fund will be created, managed by the State Treasurer.
- Rules for custody and security of the assets will be set.
- Standards will be made for how sales, investments like ETFs or staking, and audits will be done.
If approved, Arizona would be one of the first states to start a digital assets reserve fund using seized (forfeited) crypto – starting a new chapter in state-level crypto law.
Why It Matters
Arizona’s HB2324 Bitcoin reserve bill matters because of:
- Cryptocurrency jurisdiction leader: Arizona could become a model for other states on how to handle digital seized assets.
- Policy clarity: It gives police and courts clear rules on how to deal with crypto assets.
- Economic impact: If the fund grows and is used smartly, it can help pay for things like education, roads, or police work.
- Investor signal: Cleat rules may attract more crypto-related businesses to Arizona.
Final Thoughts
HB2324 is Arizona’s boldest step yet in crypto policy. It plans to use seized digital assets to support law enforcement, add money to the public fund, and even build a crypto reserve – all without costing taxpayers anything.
But the future of this bill is unclear as it needs to pass a close vote in the House, the governor may not fully support it because of the ups and downs of the crypto, and its result could affect how other states and even the federal government handle crypto rules.
As lawmakers get ready for the final vote and public input, the whole country is watching. Arizona could either lead the way in using crypto for public finance or decide to pull back at a key moment.
FAQs
What’s the current status of HB 2324?
HB2324 was brought back by the Senate on June 19, 2025, with a close vote (16-14). Now it’s being reviewed by the House. It needs 31 votes in their favour to pass there.
What happens to the seized crypto?
The first $300,000 of seized crypto goes to the Attorney General. Anything above that is split like this: 50% to the Attorney General, 25% to the general fund, and 25% to the crypto reserve fund.
Would taxpayers fund this?
No. HB2324 uses only confiscated digital assets, so it doesn’t use any taxpayer money.
Why didn’t Governor Hobbs sign it already?
Governo Hobbs vetoed some bills she thought were risky, like those related to pensions or investments. But she did sign safer ones like HB2724 and HB2387.
Could this influence other states?
Yes. HB2324 could become a model as other states look into ways to manage digital assets.