Arizona lawmakers have breathed new life into a previously defeated cryptocurrency bill. House Bill 2324, which seeks to establish a state-managed “Bitcoin and Digital Assets Reserve Fund,” is headed back to the House for reconsideration after the state Senate narrowly approved a motion to revisit the legislation on Thursday with a 16–14 vote.
The bill was originally rejected by the House on May 7 during its third reading but received a second chance thanks to a procedural motion filed by Republican Senator Janae Shamp — the only kind of motion that can be made by a legislator who originally voted against the bill.
GOP-Backed Bill Faces Partisan Split
The bill’s revival highlights deep partisan divides. Backed primarily by Republicans, HB 2324 saw near-unanimous support from the GOP in the Senate, with the exception of Republican Senator Jake Hoffman, who voted against it. For the bill to advance to Governor Katie Hobbs’ desk, it must now pass the House with a simple majority — 31 votes out of 60 — where Republicans currently hold 33 seats.
How the Reserve Fund Would Work
HB 2324 proposes creating a “Bitcoin and Digital Assets Reserve Fund” to manage digital assets seized through criminal forfeiture. If passed, the first $300,000 of any such assets would go directly to the Attorney General’s office. Amounts exceeding that would be split: 50% to the AG’s office, 25% to the state’s general fund, and 25% to the reserve fund.
Sponsored by Republican Senator Jeff Weninger, the bill also seeks to expand Arizona’s forfeiture laws to include digital assets, defining protocols for their seizure, custody, and distribution. Assets could be seized from individuals who are deceased, deported, missing, or have otherwise abandoned them — provided the state makes diligent efforts to find a legal owner.
Read More: Arizona Greenlights Bitcoin Reserve Fund With New Law on Unclaimed Crypto
Hobbs Supports Some Crypto Measures, Vetoes Others
Governor Hobbs has shown a cautious but pragmatic stance toward cryptocurrency legislation. On May 7, she signed HB 2749 into law, which allows the state to hold unclaimed crypto assets and establish a reserve fund without using taxpayer dollars. Under this framework, Arizona custodians can stake crypto holdings or accept airdrops, with the earnings funneled into the new reserve.
However, Hobbs has vetoed more aggressive crypto investment proposals. On May 2, she rejected SB 1025 — the “Arizona Strategic Bitcoin Reserve Act” — which would have permitted the state treasurer to invest up to 10% of funds in Bitcoin and other digital assets. Hobbs cited the risks of exposing public retirement funds to volatile, “untested investments.”
Just ten days later, Hobbs also vetoed SB 1373, a similar measure that proposed a “Digital Assets Strategic Reserve Fund.” In her veto letter, she stressed that crypto’s current market volatility made it unsuitable for investments backed by the state’s general fund.
