Arizona’s Bitcoin reserve bill is back on the table after the state Senate passed a motion to reconsider it on Thursday.
House Bill 2324, which was initially rejected during its third reading in the House on May 7, is now heading back for reconsideration following a narrow 16-14 Senate vote in favor of the measure.
The bill proposes the creation of a “Bitcoin and Digital Assets Reserve Fund” to manage forfeited digital assets. It’s one of several crypto-focused proposals lawmakers in Arizona have examined in recent months.
The Senate vote fell largely along party lines, with Republican Jake Hoffman being the only member of his party to oppose the bill. The motion to reconsider was filed by Republican Senator Janae Shamp, who had originally voted against the measure—a procedural requirement for bringing the bill back.
House Bill 2324 now requires a majority vote from the 60-member Arizona House—where Republicans hold 33 seats—before it can be sent to Governor Katie Hobbs for final approval.
Bill Proposes Splitting Bitcoin Reserve Funds Across State Departments
If passed, HB 2324 would direct the first $300,000 in digital assets from any criminal forfeiture to the Arizona Attorney General’s Office.
According to the bill, any amount exceeding that would be divided as follows: 50% to the Attorney General’s Office, 25% to the state’s general fund, and 25% to a newly established Digital Assets Reserve Fund.
Sponsored by Republican Senator Jeff Weninger, the bill would also broaden Arizona’s forfeiture laws to explicitly cover digital assets, outlining procedures for their seizure, storage, and distribution.
The legislation would allow the state to seize digital assets from individuals who are deceased, deported, have fled, been granted immunity, or abandoned the property—so long as the state can demonstrate that no rightful owner is known, efforts were made to identify one, and no one has come forward to claim legal ownership.
Arizona Governor Signs Bitcoin Bill into Law
On May 7, Governor Katie Hobbs signed HB 2749 into law, allowing Arizona to hold unclaimed cryptocurrency and establish a Bitcoin reserve fund—without using taxpayer money or existing state funds.
Under the new law, state custodians are permitted to stake crypto assets to earn rewards or receive airdrops, with any proceeds directed into what the state has designated as the “Bitcoin and Digital Assets Reserve Fund.”
Governor Hobbs Vetoes Two Cryptocurrency Bills
Another Bitcoin reserve proposal, Senate Bill 1025, made it to Governor Hobbs’ desk and sought to establish the Arizona Strategic Bitcoin Reserve Act (2025). The bill would have authorized the state treasurer to invest up to 10% of certain funds in Bitcoin and potentially other crypto assets.
However, Governor Hobbs vetoed the measure on May 2, expressing concerns about exposing public funds—particularly retirement savings—to “untested investments like virtual currency.”
Governor Hobbs also vetoed Senate Bill 1373 on May 12, which proposed the creation of a “Digital Assets Strategic Reserve Fund.”
In her veto letter, Hobbs cited the ongoing volatility in cryptocurrency markets, stating, “Current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars.” She added, “I have already signed legislation this session which allows the state to utilize cryptocurrency without placing general fund dollars at risk.”
