The Arizona Senate voted to revive House Bill 2324, a Bitcoin reserve bill the House initially rejected.
Arizona’s Senate passed a motion on Thursday to reconsider one of the state’s Bitcoin reserve bills, effectively bringing the proposal back into discussion.
The House initially rejected House Bill 2324 during its third reading on May 7. However, the Senate later voted 16-14 in favor of the bill, sending it back to the chamber for reconsideration.
The proposed legislation aims to establish a “Bitcoin and Digital Assets Reserve Fund” for handling seized digital assets. Lawmakers in the state have examined this bill along with several other crypto-related proposals in recent months.
The Senate’s vote to reconsider the Republican-supported bill largely followed party lines. Republican Jake Hoffman was the only member of his party who opposed the measure.
Only a lawmaker who initially voted against the bill can file a motion to reconsider — in this case, Republican Senator Jane Shamp submitted the motion.
The Arizona House must give HB 2324 majority support from its 60 members — including 33 Republicans — before they can forward it to Governor Katie Hobbs for final approval.
Bill Proposes Division of Bitcoin Reserve Funds Among State Departments
If approved, HB 2324 would direct the first $300,000 in digital assets from any criminal forfeiture to the Attorney General’s office.
According to the bill, the state will divide any amount exceeding that threshold by allocating 50% to the Attorney General, 25% to the state’s general fund, and the remaining 25% to the newly created digital assets reserve fund.
The bill, introduced by Republican Senator Jeff Weninger, also aims to broaden Arizona’s forfeiture laws to cover digital assets, setting guidelines for their confiscation, safekeeping, and distribution.
Arizona can seize digital assets from individuals who are deceased, deported, on the run, granted immunity, or have abandoned the property—provided the state proves no identifiable owner exists, makes thorough efforts to locate one, and confirms that no legal ownership has been claimed.
Arizona Governor Signs Bitcoin Legislation
On May 7, Governor Hobbs signed HB 2749 into law, permitting the state to retain unclaimed cryptocurrency and create a Bitcoin reserve fund without relying on taxpayer money or state financial resources.
The state’s custodians can stake cryptocurrency to generate rewards or accept airdrops, then deposit them into what Arizona designates as a “Bitcoin and Digital Assets Reserve Fund.”
Hobbs Rejects Two Cryptocurrency Bills
Senate Bill 1025, another Bitcoin reserve proposal that made its way to Governor Hobbs’ desk, aimed to establish the Arizona Strategic Bitcoin Reserve Act (2025). The bill would have permitted the state treasurer to allocate up to 10% of public funds into Bitcoin and potentially other digital assets.
However, Governor Hobbs rejected the bill on May 2, stating her concern that the state should not expose retirement funds to “untested investments like virtual currency.”
On May 12, Governor Hobbs also vetoed SB 1373, which aimed to establish the “Digital Assets Strategic Reserve Fund.”
In her veto letter, Hobbs stated that the ongoing volatility in cryptocurrency markets makes it an unwise match for general fund dollars. She also noted that legislation has already been signed this session permitting the state to use cryptocurrency without putting general fund resources at risk.
