Arizona House Bill 2324 for Creating a Bit and Digital Asset Reserve Fund Has Been Revived and Successfully Passed the Senate Vote.
The bill aims to establish a state-managed digital asset reserve fund financed by seized criminal assets. It will now move to the House for further deliberation.
Arizona Reviews Bit Reserve Bill
House Bill 2324 was first introduced in February, with Representative Jeff Weninger as the primary sponsor. The bill passed both chambers. However, it failed in the final vote during the third reading in the House on May 7th.
However, a series of procedural reconsideration requests in both chambers revived the bill. It has now advanced in the Senate with a 16-14 vote in favor.
๐บ๐ธ ARIZONA Update:
โ Bit Laws (@Bit_Laws) June 19, 2025
'Bit Reserve' bill HB2324, which initially failed, has been revived after a 'motion to reconsider'.
The bill would create a fund out of digital assets seized via criminal asset forfeiture.
It passed the Senate today 16-14, and is now in the House. pic.twitter.com/FKmLr8kSmJ
HB 2324 seeks to expand Arizona's forfeiture law to digital assets. It provides a legal framework for seizure, storage, and sale.
A key provision of the bill is the creation of a Bit and Digital Asset Reserve Fund. It will safely manage seized digital assets.
The state treasurer will manage this fund. Additionally, the treasurer can invest in digital assets or digital asset-related exchange-traded funds (ETFs). The bill also specifies that the first $300,000 in revenue will go to the Department of Justice.
The remaining value will be distributed as follows: 50% to the Department of Justice, 25% to the state general fund, and 25% to the Bit and Digital Asset Reserve Fund. The bill also protects innocent asset owners (including digital assets) by allowing them to claim assets if they were unaware of connections to criminal activities.
"Digital assets may remain in their original form. Digital assets seized under this chapter shall be stored in a state-approved secure digital wallet system managed by authorized personnel to prevent loss, theft, or unauthorized access," reads the bill.
Arizona Governor Who Previously Vetoed Bills - Will This Time Be Different?
To pass the House, HB 2324 needs a majority vote from more than 60 representatives, of which 33 are Republicans. If passed, the bill will be sent to Governor Katie Hobbs' desk for approval.
It's worth noting that the governor has previously vetoed two digital asset reserve bills and cryptocurrency payment-related bills.
BeInCrypto reported that Governor Hobbs vetoed Senate Bill 1025 in May, which would have allowed the state to create a Bit reserve. She made similar decisions for SB 1024 and SB 1373.
SB 1024 aimed to allow state agencies to accept cryptocurrency as payment for fines, taxes, and fees. In contrast, SB 1373 proposed establishing a digital asset strategic reserve fund financed by allocated funds and seized digital assets.
The governor's reason for rejecting SB 1373 was that she had already signed HB 2749. This House bill allows the state to claim ownership of abandoned digital assets if the owner does not respond within three years.
Therefore, even if HB 2324 passes the House, its chances of receiving the governor's approval seem low. In any case, time will tell whether this revived bill will survive or follow the path of its predecessors.
