KEY FACTS: The Arizona Senate has revived House Bill 2324 (HB 2324) with a 16-14 vote on June 19, 2025, aiming to establish a Bitcoin and Digital Assets Reserve Fund to manage cryptocurrencies seized through criminal forfeiture. The bill, which failed in the House in May, proposes a state-managed fund overseen by the Arizona State Treasurer, with proceeds from sold assets distributed to the Anti-Racketeering Fund, the General Fund, and the new reserve. Building on Arizona’s prior crypto legislation, such as House Bill 2749, HB 2324 now awaits a House vote.
Source: Seal of Arizona
Arizona Senate Revives Bitcoin Reserve Bill
The Arizona Senate has voted to revive House Bill 2324 (HB 2324), a legislative proposal aimed at establishing a Bitcoin and Digital Assets Reserve Fund to manage cryptocurrencies seized through criminal forfeiture. The bill, which initially failed in the Arizona House of Representatives in May, cleared the Senate on Thursday, June 19, 2025, with a narrow 16-14 vote, marking a pivotal moment in Arizona’s ongoing efforts to modernize its approach to digital assets. The legislation now heads back to the House for a final vote.
🇺🇸 ARIZONA Update:
'Bitcoin Reserve' bill HB2324, which initially failed, has been revived after a 'motion to reconsider'.
The bill would create a fund out of digital assets seized via criminal asset forfeiture.
It passed the Senate today 16-14, and is now in the House.
Source
House Bill 2324, introduced by Republican Senator Jeff Weninger, seeks to create a state-managed reserve fund to handle cryptocurrencies, such as Bitcoin, acquired through criminal forfeiture. The bill’s revival comes after it was rejected during its third reading in the House on May 7, 2025. Strategic procedural motions in both legislative chambers allowed lawmakers to reconsider the measure, culminating in the Senate’s narrow approval. The vote largely followed party lines, with Republican Senator Jake Hoffman being the sole GOP member to oppose the bill, while Senator Janae Shamp, who had previously voted against it, filed the motion to reconsider, signaling a shift in legislative momentum.
The proposed Bitcoin and Digital Assets Reserve Fund would be overseen by the Arizona State Treasurer and aims to establish a structured framework for managing seized digital assets. The bill outlines a tiered distribution model for proceeds from the sale of forfeited cryptocurrencies: the first $300,000 would be allocated to the Attorney General’s Anti-Racketeering Revolving Fund, with any excess divided as follows: 50% to the Anti-Racketeering Fund, 25% to the state’s General Fund, and 25% to the newly created Bitcoin and Digital Assets Reserve Fund. Additionally, the legislation allows some digital assets to remain in their native form if deemed necessary and mandates the use of secure, state-approved digital wallets for storage, aligning with modern custodial standards for blockchain-based assets.
Building on Arizona’s Crypto Legacy
Arizona has been at the forefront of cryptocurrency legislation in recent years, with lawmakers introducing over a dozen blockchain-related bills since 2020. Earlier this year, Governor Katie Hobbs signed House Bill 2749 (HB 2749) into law on May 7, 2025, which established Arizona’s first Bitcoin reserve fund for unclaimed digital assets. This fund, which does not rely on taxpayer money, allows the state to claim ownership of dormant cryptocurrencies after three years of inactivity and permits activities such as staking or participating in airdrops to generate revenue for public funds. HB 2324 builds on this foundation by focusing specifically on assets obtained through criminal forfeiture, further expanding Arizona’s capacity to integrate digital assets into its financial framework.
The revival of HB 2324 follows the state’s push to regulate and institutionalize digital assets. Unlike HB 2749, which addressed unclaimed property, HB 2324 targets cryptocurrencies seized during criminal investigations, providing law enforcement agencies with clear procedures for accessing, securing, and storing these assets. Supporters argue that the bill is essential to keep pace with the growing role of digital assets in criminal activity and economic systems.
Despite the Senate’s approval, HB 2324 faces significant hurdles. The bill must secure a majority vote from the 60-member Arizona House of Representatives, where it previously failed to gain traction. Even if it passes the House, Governor Hobbs’ approval is far from guaranteed. Hobbs has a history of vetoing cryptocurrency-related legislation, including Senate Bill 1025 (SB 1025) and Senate Bill 1373 (SB 1373) earlier this year. SB 1025, known as the Arizona Strategic Bitcoin Reserve Act, proposed allowing the state treasurer to invest up to 10% of state funds in Bitcoin and other digital assets. Hobbs rejected the measure, citing concerns over the volatility and untested nature of cryptocurrencies for state investments.
The governor’s cautious stance reflects concerns about the risks associated with digital assets, including market volatility and regulatory uncertainty. Critics of HB 2324 argue that allocating seized cryptocurrencies to a state-managed reserve fund could expose Arizona to financial risks if the value of these assets fluctuates significantly. However, proponents counter that the bill’s focus on forfeited assets, rather than taxpayer funds, mitigates these risks and positions Arizona as a leader in digital asset management. They also point to the state’s existing success with HB 2749 as evidence that a structured approach to cryptocurrencies can be both practical and beneficial.
So far, states like Texas and New Hampshire have also introduced legislation to create crypto reserves or regulate digital asset management. Arizona’s bill’s revival has also sparked interest in the cryptocurrency community, with some analysts suggesting it could bolster confidence in Bitcoin and other digital assets.
The HB 2324 is heading to the Arizona House for reconsideration. The bill’s supporters remain optimistic, citing the growing political will to address digital assets and the state’s prior success with HB 2749. However, the narrow Senate vote and Hobbs’ history of vetoing similar measures suggest a challenging path forward. For now, the bill’s fate rests with the House and the governor’s desk. Its outcome will likely shape Arizona’s crypto policy for years to come and could signal whether the state is ready to embrace digital assets as a core component of its financial strategy.
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