Arizona Senate Revives Bitcoin Reserve Bill With Narrow Vote

Senate Resurrects HB 2324 After Initial House Rejection

Arizona’s push for a Bitcoin reserve isn’t dead yet. The state Senate has revived House Bill 2324, a previously rejected measure that seeks to establish a “Bitcoin and Digital Assets Reserve Fund.” The Senate voted 16–14 to bring the bill back, setting the stage for another vote in the House.

HB 2324 had initially failed on May 7, falling short during its third reading. But thanks to Republican Senator Jane Shamp, who originally opposed the bill and filed a motion to reconsider, the proposal got another chance. The latest vote was split mostly along party lines, with Republican Jake Hoffman as the only defector from his party.

Now, the bill will return to the 60-member House, where it must secure a majority of 31 votes to be sent to Governor Katie Hobbs for final approval.

How the Bitcoin Reserve Would Be Managed

If passed, HB 2324 outlines how the state would handle digital assets seized during criminal forfeitures. According to the bill:

The first $300,000 worth of seized crypto would go to the Attorney General’s office.

Any additional funds would be split: 50% to the Attorney General, 25% to the state’s general fund, and 25% to the Bitcoin and Digital Assets Reserve Fund.

The bill would also amend Arizona’s forfeiture laws to include digital assets. That means crypto from deceased, deported, or absconded individuals—provided no rightful owner can be found—could be legally seized by the state and allocated under the new provisions.

Hobbs Already Signed One Crypto Bill Into Law

Interestingly, Governor Hobbs is not new to crypto legislation. On May 7, she signed HB 2749, a separate bill that also allows for a state-managed reserve fund for unclaimed crypto. Unlike other proposals, this bill prohibits the use of taxpayer dollars. Instead, custodians are allowed to stake crypto for rewards or accept airdrops, adding value without direct financial risk to the state.

This creates an alternative model for government crypto use—incentivizing digital asset growth while shielding public funds from volatility.

Other Crypto Bills Vetoed by the Governor

While she backed HB 2749, Hobbs vetoed two other Bitcoin reserve bills, citing fiscal caution and market instability. Senate Bill 1025, which would’ve authorized the Arizona State Treasurer to invest up to 10% of the state’s portfolio into Bitcoin, was blocked on May 2.

She also shut down SB 1373 on May 12, a proposal for creating a “Digital Assets Strategic Reserve Fund.” The governor argued that “volatility in cryptocurrency markets” makes crypto inappropriate for general fund exposure.

However, she reiterated her support for crypto tools that don't endanger public finances, as evidenced by her earlier approval of HB 2749.

What’s Next for HB 2324?

The revived HB 2324 is heading back to the House, where the outcome is uncertain. If passed, it could represent one of the most detailed crypto-focused forfeiture laws in the country, laying out how states can seize, manage, and repurpose digital assets.

As the national conversation around state-managed Bitcoin reserves heats up, Arizona may soon become a pioneer in turning forfeited crypto into government assets.