Arizona Senate Advances Bitcoin Reserve Bill Amid Crypto Policy Shifts

Arizona’s Senate has passed House Bill 2324 (HB 2324), reviving the state’s proposed Bitcoin and Digital Assets Reserve Fund. The bill, which would manage digital assets seized through criminal investigations, passed narrowly in a 16-14 vote and now awaits a final decision in the House.

HB 2324 establishes a fund overseen by the Arizona state treasurer to store, manage, or liquidate digital assets—such as Bitcoin—confiscated via asset forfeiture. The measure includes updates to the state’s forfeiture laws to formally recognize digital assets and outlines secure custodial practices, including the use of licensed exchanges and state-approved wallets.

Although the bill initially stalled in the House last month, lawmakers revived it through procedural motions. If passed, Arizona would join a growing number of U.S. states creating frameworks for managing cryptocurrencies, reflecting increasing state-level interest in digital asset regulation under the Trump administration’s renewed national policy push.

Meanwhile, Governor Katie Hobbs has taken a mixed approach to crypto legislation. She recently vetoed Senate Bill 1373 and Senate Bill 1025, which proposed more aggressive uses of digital assets, including allowing state investment of treasury and pension funds in crypto. Hobbs cited financial risk as her reason for rejecting those bills.

However, Hobbs did approve House Bill 2749, allowing the state to retain unclaimed digital assets without forced liquidation, and House Bill 2387, which enforces stricter rules on crypto ATM operations in Arizona.

As debates continue, Arizona emerges as a key battleground in shaping digital asset policies, balancing innovation with consumer protection and financial stability. The outcome of HB 2324 may influence similar efforts in other states navigating the evolving crypto regulatory landscape.