Main Points:
- HB 2324 was revived by the Arizona Senate on June 19, 2025, by a 16–14 vote and now returns to the House for final approval.
- The bill establishes the “Bitcoin and Digital Assets Reserve Fund” using seized crypto assets, with specific allocation rules.
- The first $300,000 goes entirely to the Anti-Racketeering Revolving Fund; amounts beyond are split: 50% Anti-Racketeering, 25% General Fund, 25% Reserve Fund.
- Seized assets must be stored in a secure state-managed digital wallet under strict controls to prevent loss or theft.
- Governor Katie Hobbs’s veto history suggests close scrutiny, but this bill’s use of forfeited—not taxpayer—funds differentiates it from past proposals.
- Similar legislation is under consideration in multiple states, reflecting a growing trend toward state-level crypto “strategic reserves.”
Background of HB 2324’s Resurrection
House Bill 2324—commonly known as the Bitcoin and Digital Assets Reserve Fund Bill—initially failed in the Arizona House earlier this session. However, on June 19, 2025, the Arizona Senate voted 16–14 to reconsider and revive the bill. It now returns to the lower chamber; if approved, it will proceed to Governor Katie Hobbs for signature.
Establishing the Reserve Fund
HB 2324 creates a new state-administered fund for digital assets forfeited during criminal investigations. Key provisions include:
- Source of Funding: All seized digital assets (including Bitcoin, Ethereum, and other tokens) deposited under Arizona Revised Statutes §§ 13-4305 and 13-4315.
- Administration: The State Treasurer manages the fund, and all assets are subject to legislative appropriation.
- Withdrawal & Sale: The statute allows the State Treasurer to hold assets or sell them on state-approved exchanges, ensuring liquidity when needed.
Allocation of Assets
The bill specifies a three-tier distribution for net proceeds from asset sales:
- First $300,000: 100% to the Anti-Racketeering Revolving Fund (ARRF).
- Amounts > $300,000:
- 50% to ARRF
- 25% to the State General Fund
- 25% to the newly established Bitcoin and Digital Assets Reserve Fund
[Allocation of Seized Crypto Proceeds under HB2324]
This structured split ensures immediate support for law enforcement operations while seeding a dedicated crypto reserve.
Secure Storage Requirements
To prevent loss, theft, or mismanagement, HB 2324 mandates that all retained digital assets be stored in a state-controlled secure digital wallet. The bill outlines:
- Multi-layer Custody: Use of hardware security modules (HSMs) and multi-signature (multi-sig) schemes.
- Audit Trails: Full chain-of-custody logs, periodic third-party audits, and real-time monitoring.
- Disaster Recovery: Off-site key backups with tamper-evident protections.
Political Context & Governor’s Stance
Governor Katie Hobbs vetoed a different bill in 2023 that would have allocated taxpayer funds to a Bitcoin investment, citing volatility and unproven practicality. However, she signed separate legislation in May 2025 updating unclaimed-property laws to allow the state to take title to abandoned crypto assets—demonstrating openness to once-ownerless funds. The key difference with HB 2324 is its reliance on forfeited assets, not public tax revenues.
Nationwide Trend: State-Level Crypto Reserves
Arizona is not alone. A growing number of states have introduced or passed crypto reserve bills in 2025, including:
- New Hampshire: First to enact a similar fund earlier in the year.
- Texas: Governor Abbott signed SB 21 to create a publicly funded Bitcoin reserve, positioning BTC as a state asset.
- Florida & Wyoming: Bills under consideration that mirror Arizona’s structure, some proposing direct strategic reserves from general funds.
A National Conference of State Legislatures (NCSL) report notes 40+ states have pending crypto legislation this session, signaling a nationwide movement toward public-sector blockchain engagement.
Implications for Crypto Investors & Blockchain Use
For readers hunting the next crypto asset or exploring practical blockchain applications, HB 2324 offers several takeaways:
- Market Stability: State sales of seized assets could introduce predictable sell-side liquidity, potentially reducing price shocks.
- Government Adoption: Secure in-house crypto storage sets precedents for public-sector blockchain projects (voting systems, identity management, etc.).
- New Revenue Streams: The Reserve Fund could finance future blockchain R&D or public blockchain infrastructure, creating public-private partnership opportunities.
Conclusion
Arizona’s revival of HB 2324 marks a significant milestone in American crypto policy. By leveraging seized digital assets rather than taxpayer dollars, the bill deftly navigates political concerns around volatility while forging a blueprint for state-level blockchain engagement. Should the House and Governor approve, Arizona will join New Hampshire and Texas in pioneering how governments can responsibly hold and deploy cryptocurrency. For investors and developers alike, these legal frameworks hint at expanding public-sector demand for blockchain services, secure digital custody solutions, and innovative use cases that blend law enforcement, financial technology, and decentralized assets.
