Arizona legislators have passed House Bill 2324, proposing the creation of a state Bitcoin and Digital Assets Reserve Fund. The measure received approval in the House of Representatives by a 34-22 vote and narrowly cleared the Senate in a 16-14 decision.
The bill amends existing forfeiture laws to include cryptocurrencies seized during investigations. These digital assets will be transferred to the state Attorney General’s office and allocated to fund law enforcement operations while establishing Arizona’s pioneering crypto reserve.
HB 2324 complements prior legislation HB 2749 to formalize the treatment of confiscated digital assets. Governor Katie Hobbs must now decide on the bill’s enactment after previous vetoes of crypto-related measures, including SB 1025 which proposed state treasury Bitcoin investments over market volatility concerns.
The legislation marks significant progress in institutionalizing cryptocurrency within state governance, potentially establishing the first government reserve funded through seized digital assets. If implemented, the fund could influence similar initiatives by other U.S. states navigating crypto regulation.