Arizona lawmakers advance bill to establish crypto reserve using seized funds

Arizona's House of Representatives has passed a bill that would create a reserve fund for seized crypto assets.The House passed the bill, dubbed HB 2324, in a 34-22 vote on Tuesday, advancing it to Governor Hobbs, according to the legislature's website. It passed the Senate last week in a 16-14 vote, after previously failing a House final read in May.HB 2324 aims to grant the State Treasurer the authority to create the Bitcoin and Digital Assets Reserve Fund, which would oversee crypto assets obtained through criminal forfeiture. The measure would enable the state to invest, reinvest, and divest funds in crypto assets or exchange-traded funds containing digital assets.If signed into law, HB 2324 would mark Arizona's second piece of legislation establishing a crypto reserve. Last month, the state enacted HB 2749, which focuses on unclaimed crypto assets presumed abandoned, while HB 2324 addresses crypto assets obtained through forfeiture. HB 2324 outlines explicitly how funds from the sales of forfeited crypto assets should be allocated. The first $300,000 would be directed to the Anti-Racketeering Revolving Fund. Any amount above that would be divided, with 50% continuing to support the same fund, 25% going to the state's General Fund, and the remaining 25% allocated to the newly created Bitcoin and Digital Assets Reserve Fund.Arizona is also considering several other bills related to crypto security, kiosks, and payments.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.