Arizona revives controversial Bitcoin Reserve bill – Here’s what it means for crypto seizures

• Arizona advances bill to manage seized digital assets through a new reserve fund.
• Multiple U.S. states to explore similar crypto reserve legislation following Arizona.

Arizona lawmakers have been recently making headlines for their stance on digital assets, as recent legislative developments have highlighted both support and caution within the state’s leadership.

Earlier this year, Governor Katie Hobbs signed two key bills into law.

House Bill 2749 marked Arizona’s first official move to establish a digital asset reserve, while House Bill 2387 introduced consumer protection standards for cryptocurrency ATMs.

At the same time, she has exercised restraint by vetoing more ambitious proposals involving public fund investments in crypto and the creation of a broader crypto reserve fund.

Arizona revives house Bill 2324

Despite these vetoes, momentum continued in the legislature, with the Arizona Senate recently passing House Bill 2324.

This is a renewed initiative to create a reserve fund for digital assets acquired through criminal forfeiture, with the bill now heading to the House for final consideration.

House Bill 2324, once sidelined, was revived through strategic “motions to reconsider” introduced in both legislative chambers.

This procedural maneuver allowed lawmakers to bring the bill back for another vote.

The bill, introduced by Republican Senator Jeff Weninger, also seeks to update Arizona’s forfeiture laws to specifically address the handling, storage, and distribution of digital assets.

If enacted, the legislation would establish a Bitcoin and Digital Assets Reserve Fund, managed by the Arizona State Treasurer, specifically to oversee the handling of digital assets acquired through criminal forfeiture.

Details of the bill

House Bill 2324 outlines a clear framework for how proceeds from the sale of forfeited digital assets would be allocated.

According to the proposal, the initial $300,000 generated would be directed to Arizona’s Anti-Racketeering Revolving Fund.

Any amount exceeding that threshold would be divided further; half would continue to support the Anti-Racketeering fund, while the remaining half would be split evenly between the state’s General Fund and the proposed Bitcoin and Digital Assets Reserve Fund.

This tiered distribution structure ensures both law enforcement and state financial interests are supported through the forfeiture of digital assets.

The Senate passed the measure in a narrow 16-14 vote, mostly along party lines, with only one Republican, Jake Hoffman, dissenting.

In fact, the bill’s return to the floor was made possible by another Republican Senator, Janae Shamp, who had also previously opposed it. However, since they opposed it earlier, they were also eligible to request reconsideration.

Now, HB 2324 awaits a vote in the House, where it needs support from the Republican majority to move forward to the governor’s desk.

Will other states follows?

While Arizona would become only the second state after New Hampshire to pass a Bitcoin [BTC] reserve bill, it reflects a broader trend gaining traction nationwide.

Texas has already approved a similar legislation, and a wave of states including Illinois, Kentucky, Utah, Maryland, New Mexico, North Dakota, Ohio, Pennsylvania, South Dakota, and Wyoming are actively exploring their own versions of digital asset reserve laws.

Though it remains uncertain how many will ultimately succeed, it’s evident that the conversation around state-level crypto policy is quickly evolving, and Arizona’s actions could set the stage for more structured approaches across the country.