Arizona is on the verge of making history with the approval of House Bill 2324, which paves the way for the creation of the first state-run Bitcoin reserve in the United States. This reserve will be funded entirely by seized digital assets, setting a precedent for other states to follow.
The Arizona House of Representatives passed HB 2324 with a 34-22 vote, signaling a significant shift in how states are approaching cryptocurrencies. Unlike New Hampshire and Texas, which have recently approved their own state-level Bitcoin reserves using public funds, Arizona’s reserve will draw exclusively from digital assets forfeited in criminal investigations. This makes it the first “seized-assets-backed” Bitcoin reserve in the country.
One of the key features of HB 2324 is that it ensures there is no taxpayer exposure. The bill stipulates that the first $300,000 from each digital asset forfeiture will go to the Arizona Attorney General’s office, with the remainder split between the AG, the state’s General Fund, and the newly created Bitcoin reserve. This framework is explicitly defined in the legislation to ensure transparency and accountability.
The reserve must be held in a state-approved, secure digital wallet, and 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, although there is no explicit requirement for case-by-case legislative or executive approval for liquidation.
With the Arizona Senate narrowly passing the measure 16-14, the bill now awaits Governor Katie Hobbs’ decision. Governor Hobbs has until July 1 to sign or veto the bill, and her decision will determine whether Arizona becomes the first state in the U.S. to have a Bitcoin reserve funded entirely by seized digital assets.
If Governor Hobbs signs HB 2324 into law, Arizona will need to finalize its custody framework before deposits begin. The first contributions of seized crypto could feasibly begin in late 2025, depending on regulatory implementation and asset forfeiture proceedings.
Several other states are also exploring similar ideas, with formal Bitcoin-reserve bills already filed in Missouri, Wyoming, and Oklahoma. However, Arizona is poised to take the lead in establishing a sovereign Bitcoin reserve without any taxpayer outlay, marking a significant milestone in the integration of cryptocurrencies into state financial strategies.
As Arizona stands ready to make history with its state-run Bitcoin reserve, the implications of this decision could have far-reaching effects on how other states approach digital assets. By funding the reserve through seized assets, Arizona is setting a new standard for financial innovation and embracing the future of digital currencies.