The State of Arizona Governor, Katie Hobbs, has rejected House Bill 2324, a proposal to establish a crypto reserve for the state from cryptocurrency proceeds confiscated from criminals. She revealed the decision via a veto letter released on Tuesday, July 1, 2025.
Notably, this isn’t the state’s first rejection of a BTC reserve bill. In May, Arizona became the second U.S. state to pass a cryptocurrency reserve bill into law with its HB 2749 proposal, which was also rejected.
Arizona Rejects BTC Reserve Bill
The bill included that the first $300,000 from seized cryptocurrency sales be directed to the state’s Anti-Racketeering Revolving Fund, while the remaining proceeds be split between the state general fund and the new reserve.
Although the House passed the bill on a 34-22 vote last week, Governor Hobbs took a different stance. Notably, her approval could have paved the way for the state to invest in and hold crypto assets of exchange-traded funds (ETFs) linked to cryptocurrencies.
Stating the reason behind her decision in the Veto letter, Hobbs commented,
“This bill disincentives local law enforcement from working with the state on digital asset forfeiture by removing seized assets from local jurisdictions.”
Meanwhile, a change to the Governor’s veto is only possible if two-thirds of the House and Senate vote against it, but it is unlikely, as it would require some lawmakers to change their position on the matter.
U.S. Government Moves Pro-crypto
Considering the current U.S. administration and President Donald Trump’s stance on crypto, Arizona could be moving against the trend, as the government holds confiscated cryptocurrencies and is on the verge of establishing a strategic bitcoin reserve.
During this presidential campaign, Trump promised to boost the American cryptocurrency ecosystem, thus winning the hearts and gaining the votes of both prominent and non-influential Americans. He also revealed plans to ensure the U.S. never sells any of its bitcoins but would continue to buy to acquire the apex coin from the open crypto market.
Meanwhile, with numerous tariff announcements from Trump, the cryptocurrency market and BTC price have fluctuated within the past month. At the time of writing, BTC trades at around $107,050.