Governor Katie Hobbs has vetoed Arizona House Bill 2324, which proposed establishing a state-controlled Bitcoin reserve fund using seized cryptocurrency assets. The Governor cited jurisdictional misalignment and inadequate regulatory frameworks as primary reasons for rejecting the legislation.
Hobbs characterized state-controlled cryptocurrency reserves as an “untested investment” carrying potential liability risks. The bill aimed to create a strategic digital assets repository funded through forfeited cryptocurrencies, targeting Bitcoin holdings specifically.
This decision maintains Arizona’s cautious approach toward state-managed crypto assets, mirroring Hobbs’ earlier veto of Senate Bill 1373 which advanced similar objectives. The legislative journey of HB 2324 saw fluctuating support, including initial Senate rejection before revival and eventual passage.
While several U.S. states have implemented cryptocurrency reserve systems, Arizona continues prioritizing jurisdictional clarity and comprehensive regulatory frameworks. This veto underscores the state’s preference for established investment approaches over emerging cryptocurrency mechanisms.