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Arizona approves Bitcoin fund using seized crypto, not taxpayer money, via HB2324 bill.
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HB2324 prevents previous vetoes, by limiting crypto-reserves to criminal forfeiture assets.
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If the bill is signed into law, it will be Arizona’s second major crypto-reserve legislation.
Arizona has enacted HB2324, a law that creates a Bitcoin Reserve Fund, which is solely comprised of seized cryptocurrencies resulting from criminal asset forfeiture proceedings. The bill was passed by the House of Representatives with a vote of 34-22 on June 24, 2025. It had been approved by the Senate on June 19 with a vote of 16-14. It is now awaiting Governor Katie Hobbs’ signature to become law.
The law prevents taxpayers from investing directly using state or treasury money. Instead, they can use only funds that are won in criminal cases. This approach avoids complications that caused Governor Hobbs to veto the previous Bitcoin reserve bills SB1373 and SB1025 which would have allowed state direct investment in cryptocurrency holdings with public funds.
Second Reserve Fund After Unclaimed Property Legislation
Second Reserve Fund After Unclaimed Property Legislation
If HB2324 is passed, it would be Arizona’s 2nd Bitcoin reserve bill, following HB2749 which established a reserve fund for unclaimed property. This bill is different from previous proposals to increase state investment power in cryptocurrency because it places a greater emphasis on criminal forfeiture. The bill avoids political risks by relying on assets that have already been confiscated by law-enforcement.
The bill establishes secure custodial practices such as blockchain-based access controls, third-party requirements for custodians, and state-validated usage of digital wallets. Asset management provisions allow authorities to liquidate digital assets through licensed cryptocurrency exchanges or hold them based on market conditions.
Governor Hobbs raised concerns earlier
Governor Hobbs raised concerns earlier
Governor Hobbs expressed concern over speculative investments using tax money when he rejected earlier Bitcoin reserve proposals. The structure of HB2324 addresses these concerns by establishing a system that is separate from tax money and state investment policy. Instead, it is based solely on law enforcement asset recoveries.
The criminal asset forfeiture system is a useful tool for law enforcement agencies to handle cryptocurrency that they are increasingly dealing with during investigations. The reserve fund allows coins and tokens to be held professionally and purposefully instead of immediately liquidating digital assets.
In criminal investigations involving money-laundering, drug trafficking and financial fraud, law enforcement agencies are increasingly encountering cryptocurrency. The reserve fund allows for an organized handling of these assets and avoids a hasty liquidation which could limit the value of the state’s recovery.
The HB 2324 also details how forfeited crypto will be distributed. The first $300,000.00 will go to the Anti-Racketeering Revolving Fund. The remaining amount will be divided as follows: 50% of the funds will continue to support the same fund; 25% will go to state general fund and the remaining 25% to the newly created Bitcoin Reserve Fund.
Related: Texas Bitcoin Reserve protected by new law; investment decision from governor awaiting
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