The Arizona Senate has revived the campaign to create a formal reserve of cryptocurrencies seized by state agencies. On 19 June 20225, lawmakers passed House Bill 2324 (HB 2324) by a slim 16–14 vote in the Senate, reviving a measure intended to establish a new state-managed fund for digital assets seized during criminal proceedings. After faltering in the House in May, the legislation now heads back for another vote—and potentially to Governor Katie Hobbs for approval.
Background: HB 2324’s Legislative Journey
Originally introduced by Republican Rep. Jeff Weninger, HB 2324 seeks to amend Arizona’s forfeiture laws to include digital assets like Bitcoin. Though the House earlier killed it on May 7, legislative maneuvering allowed a reintroduction and reconsideration in both chambers. A procedural motion in the Senate—from Sen. Janae Shamp, who voted against the bill originally—set the stage for its revival on June 19, when it passed 16–14, largely along party lines.
Key Features of the Bill
The bill creates the Bitcoin and Digital Assets Reserve Fund, which will be administered by the treasurer for the State of Arizona, to deal with seized cryptocurrencies. There are a couple of options for handling assets, including:
- Storage of funds in securely, state-approved, digital wallets.
- The sale of assets through licensed exchanges.
- Retaining the assets in native form, depending on market stability and storage capacity.
Revenue distribution is tiered:
- The first $300,000 goes to the Attorney General’s Anti Racketeering Fund.
- Amounts beyond that split: 50% to the AG, 25% to the General Fund, and 25% to the new reserve fund.
In addition, HB 2324 amends previous statutes to require seized cryptocurrency to be treated as connected directly to an act of criminality and provides due diligence to protect good faith owners.
Crypto Milestones of Arizona
This legislation takes advantage of the progress for HB 2749 signed into law on May 7, 2025. That law created a reserve fund of unclaimed digital property so the state could earn income from staking assets without tapping taxpayers for reimbursement. Arizona became the second U.S. state (after New Hampshire) to establish a crypto reserve fund.
However, Governor Hobbs has vetoed two broader crypto initiatives—SB 1025 and SB 1373—that focused on investing state funds into cryptocurrency, citing volatility and limited historical precedent.
What’s Next in the Process
HB 2324 returns to the Arizona House, where it needs approval from at least 31 of the 60 members. With slim margins and divided support across party lines, the outcome remains uncertain. If passed, the bill must then earn Governor Hobbs’ signature—or face veto, as previous bills have.
Broader Implications for Crypto Policy
Arizona’s action reflects a growing trend among U.S. states to legislate digital asset management. New Hampshire has already completed its crypto reserve process; Texas and others are exploring similar legislation.
Establishing a state framework for seized crypto furthers regulatory clarity and could set a model for other jurisdictions. Advocates are optimistic that the provisions in the bill will lead blockchain based businesses to view Arizona as an amicable environment for cryptocurrency, and advance innovation in the state while simultaneously address financial crime.
Last Words
HB 2324 represents a major milestone in Arizona’s digital assets policy – at least for now. By providing a quasi-formal policy framework regarding forfeited or abandoned cryptocurrency, and by clearly showing the state’s ambition without equivocation regarding both the state’s risk taking and regulatory control over forfeited or abandoned cryptocurrency, Arizona is a leader in digital asset policy in the United States. Where the bill goes from here will be dependent on its passage through the House, and if Governor Hobbs is willing to accept another crypto milestone. If passed, HB 2324 has the potential to significantly influence how governments nationally treat digital assets – in the publicly finance world.
