Arizona has passed House Bill 2324, allowing the state to store and manage cryptocurrencies seized during criminal investigations. This development marks a significant step forward in how states handle digital assets, enabling Arizona to establish a dedicated reserve fund for confiscated cryptocurrency. The bill, however, awaits Governor Katie Hobbs’ approval.
Arizona’s Bill Will Hold Only Seized Assets
House Bill 2324 passed the Arizona Senate with a narrow 16-14 vote on June 19, 2025, after initially failing in the House in May. Revived through procedural motions, the bill allows the state treasurer to establish a Bitcoin and Digital Assets Reserve Fund to manage seized digital assets. Authorities can store these assets in state-approved digital wallets, sell them via licensed exchanges, or hold them based on market conditions.
The bill also updates Arizona’s forfeiture laws to include digital assets, ensuring clear protocols for their seizure, storage, and disposal. Notably, the first $300,000 from seized cryptocurrency sales is allocated to the state’s Anti-Racketeering Revolving Fund, with the remaining proceeds divided between the general fund and the new reserve. This structured approach sets the bill apart, striking a balance between law enforcement needs and financial management.
Governor Hobbs has previously vetoed similar bills, such as Senate Bill 1373, citing risks to public funds, making HB 2324’s focus on seized assets a cautious yet innovative step.
Same Push, Different Outcome
The effort to establish a Bitcoin reserve has yielded varying results. Yesterday, Texas became the first U.S. state to establish a publicly funded Bitcoin reserve, allocating $10 million to purchase the cryptocurrency. Signed into law by Governor Greg Abbott, Senate Bill 21 (SB 21) establishes the Texas Strategic Bitcoin Reserve, which is managed separately from the state’s treasury.
Other states are following suit. New Hampshire passed a law on May 6, 2025, permitting its treasury to invest in cryptocurrencies and precious metals. States such as Illinois, Kentucky, Utah, Maryland, New Mexico, North Dakota, Ohio, Pennsylvania, South Dakota, and Wyoming are exploring similar legislation, reflecting a growing interest in digital asset reserves.
Arizona’s House Bill 2324 now heads to the House for a final vote before reaching Governor Hobbs’ desk. Her decision will determine whether Arizona joins states like Texas and New Hampshire in formalizing crypto reserves. If signed into law, the bill could set a precedent for managing seized digital assets, potentially influencing other states to adopt similar frameworks.
