Arizona Governor Katie Hobbs has vetoed HB 2324, blocking legislation that proposed pooling seized cryptocurrencies into a state-managed Bitcoin and Digital Assets Reserve Fund. This marks her third rejection of similar initiatives seeking to incorporate cryptocurrencies into Arizona’s reserves.
Hobbs previously vetoed SB 1025 and SB 1373, which aimed for state investments in Bitcoin or cryptocurrency reserves. The move contrasts with her concurrent approval of HB 2749, a bill supporting regulated crypto policy adoption—indicating selective endorsement of cryptocurrency frameworks.
Blockchain experts interpret the vetoes as reflecting Arizona’s caution in balancing law enforcement forfeiture policies with public fund risks amid evolving digital asset regulations. Government discussions may now pivot toward alternative crypto integration models that avoid exposing taxpayer resources to market volatility.