Arizona Advances Toward Bitcoin Reserve With Senate Approval of Seized Crypto Bill

Arizona has taken a pivotal step toward becoming one of the first U.S. states to formalize a state-managed cryptocurrency reserve. On June 20, the state Senate narrowly approved House Bill 2324 (HB 2324), a revived piece of legislation authorizing the creation of a Bitcoin and Digital Assets Reserve Fund.

Passed by a slim 16-14 margin, the bill now returns to the House of Representatives for a final vote. Its previous failure in May had stalled momentum, but Senate revisions have resuscitated the initiative. If passed in the House, the bill will head to Governor Katie Hobbs for approval.

HB 2324 would empower the Arizona State Treasurer to oversee a reserve fund composed of cryptocurrency assets seized through criminal forfeiture. These assets, typically acquired through law enforcement operations, would no longer be liquidated and transferred solely to fiat funds. Instead, Arizona could choose to hold or reinvest them in digital assets or ETFs backed by crypto.

The distribution structure of the seized funds is carefully outlined. The first $300,000 from any asset liquidation would support the Anti-Racketeering Revolving Fund. Beyond that, the remaining balance would be divided as follows: 50% to the Attorney General's office, 25% to the state’s general fund, and 25% directly into the newly established crypto reserve.

The bill also updates Arizona’s criminal forfeiture procedures to address digital asset security. It mandates that law enforcement either obtain access credentials such as private keys and seed phrases or securely transfer seized assets to a state-approved digital wallet.

This initiative is part of a broader trend. Since President Donald Trump’s return to office, multiple states have accelerated crypto-related legislation, aiming to construct state-level regulatory frameworks. Arizona now joins Texas and New Hampshire in leading these efforts. Notably, New Hampshire has already enacted a bill to establish its own Bitcoin reserve, while Texas is in the final legislative stages.

Nationally, momentum is also building. The U.S. Senate recently passed the GENIUS Act, a federal stablecoin framework now awaiting House review. President Trump has publicly championed the bill, calling it a cornerstone of America’s future as the “undisputed leader” in digital assets.

If HB 2324 is enacted, Arizona would become the second U.S. state with a legal mandate to hold Bitcoin and other crypto assets in reserve—a move that could serve as a model for future crypto integration at the state level. With 33 Republicans in the 60-member House, the bill's final vote will be a critical test of bipartisan alignment on emerging digital finance policy.