Yigit Taha OZTURK 
The Arizona Senate has voted to revive House Bill 2324 — a previously rejected proposal aiming to establish a Bitcoin and Digital Assets Reserve Fund. The bill, which initially failed in the House on May 7, is now set to return for a second round of voting after passing the Senate with a narrow 16-14 vote.
The reconsideration motion was filed by Republican Senator Jane Shamp, who had originally voted against the bill. Interestingly, the Senate vote followed mostly party lines, with only Republican Senator Jake Hoffman breaking ranks to oppose the legislation.
What the Bill Proposes
If passed, HB 2324 would allow the state to manage seized digital assets under a newly created reserve fund. According to the bill:
- The first $300,000 worth of seized Bitcoin (BTC) and digital assets would go to the Attorney General’s office.
- Any amount above that would be distributed as follows: 50% to the Attorney General, 25% to the state’s general fund, and 25% to the new reserve fund.
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In addition, the bill seeks to expand Arizona’s forfeiture laws to include digital assets — outlining procedures for seizure, storage, and distribution. The state would be authorized to seize crypto assets in cases where the owner is deceased, deported, fled, granted immunity, or legally untraceable after due diligence.
Governor Hobbs: Supportive Yet Cautious
Governor Katie Hobbs has taken a mixed stance on cryptocurrency legislation. On May 7, she signed HB 2749 into law, which authorizes the creation of a Bitcoin reserve fund that doesn’t rely on taxpayer money. This fund allows the state to stake crypto and collect airdrops for additional yield.
However, she vetoed SB 1025 on May 2 — a proposal that would have allowed Arizona’s treasury to invest up to 10% in Bitcoin and other digital assets. In her veto letter, Hobbs stated that public retirement funds should not be exposed to untested investments.
She also rejected SB 1373 on May 12, which aimed to form a “Digital Assets Strategic Reserve Fund,” again citing high volatility in the crypto markets as a risk to public resources.
What This Means for Crypto Policy
The debate in Arizona highlights a broader trend in the U.S.: balancing innovation in the blockchain space with regulatory caution. If HB 2324 passes the House, it will head to Governor Hobbs’ desk for final approval. The outcome could signal a stronger institutional role for Bitcoin and digital assets in state-level governance.
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