Arizona state won’t buy Bitcoin

HB 2324 heads to the governor’s desk after House vote, establishing a U.S. first: a state-run Bitcoin reserve funded entirely by forfeited digital assets

The Arizona House of Representatives passed House Bill 2324 on Tuesday, approving legislation to create the first Bitcoin reserve in the United States funded solely through seized digital assets. The 34–22 vote, with four members not voting, sends the bill to Governor Katie Hobbs, who now has five business days to sign or veto it.

If enacted, the measure would position Arizona as a national pioneer, distinct from New Hampshire and Texas, which recently approved their own state-level Bitcoin reserves using public funds. Arizona’s version, by contrast, would draw exclusively from digital assets forfeited in criminal investigations, making it the country’s first “seized-assets-backed” Bitcoin reserve.

No Taxpayer Exposure

Under HB 2324, the first $300,000 from each digital asset forfeiture would go to the Arizona Attorney General’s office. The remainder would be split: 50% to the AG, 25% to the state’s General Fund, and 25% into the newly created Bitcoin reserve, a framework explicitly defined in the legislation.

The reserve must be held in a state-approved, secure digital wallet. While the bill does not mandate annual audits, it does restrict how assets can be liquidated.

Any sale or conversion of Bitcoin must occur through “state-approved cryptocurrency exchanges or other secure platforms,” according to the bill text. However, there is no explicit requirement for case-by-case legislative or executive approval for liquidation.

Tuesday’s vote came five days after the Arizona Senate narrowly passed the measure 16–14. With House concurrence now secured, the bill advances to Gov. Hobbs, who has until July 1 to act.

Setting a Precedent

The bill makes Arizona the third U.S. state to authorize a Bitcoin reserve, but the first to do so without any taxpayer outlay.

While the bill drew strong Republican support, it also won attention from crypto-focused policy groups like Satoshi Action Fund, which is active in assisting states in adopting Bitcoin.

For fiscal conservatives, the model is appealing as a way to build hard-asset reserves insulated from inflation and federal fiscal risks. For crypto advocates, it marks another milestone in normalizing Bitcoin as a strategic public asset, akin to gold.

Will Hobbs Sign?

Governor Katie Hobbs has not indicated whether she plans to sign or veto HB 2324. In May, she rejected a broader, taxpayer-funded Bitcoin reserve (SB 1025), calling it “premature” and raising concerns over custodial risk.

However, she signed HB 2749 later that same month, authorizing Arizona to hold unclaimed digital property, including crypto, suggesting a potentially softer stance when the state isn’t directly allocating funds.

Senator Wendy Rogers, a vocal supporter of the bill, emphasized the importance of integrating Bitcoin into Arizona’s financial strategy, advocating for measures that bolster the state’s fiscal position without increasing taxes.

Arizona law grants the governor five business days, excluding Sundays, to act on a bill once it is transmitted. If no action is taken by July 1, HB 2324 will automatically become law.

What Comes Next

If the bill is enacted, the state will need to finalize its custody framework before deposits begin. While no official timeline has been announced, depending on regulatory implementation and asset forfeiture proceedings, the first contributions of seized crypto could feasibly begin in late 2025.

Several other states are exploring similar ideas. Formal Bitcoin-reserve bills have already been filed in Missouri (HB 1217), Wyoming (HB 0201), and Oklahoma (HB 1203), though none have yet been signed into law.

For now, Arizona stands ready to become the first U.S. state to build a sovereign Bitcoin reserve funded entirely by seized digital assets, not by taxpayers. This would be a legal and symbolic shift from the models seen in New Hampshire and Texas.