Arizona Moves to Create State Bitcoin Reserve Funded by Seized Crypto
Arizona’s GOP-Backed Crypto Reserve Plan Sets Blueprint for States Eyeing Forfeiture-Funded Bitcoin Holdings Under Trump’s Order.
Key Takeaways:
- Arizona’s GOP-led crypto reserve model could pressure other states to adopt similar forfeiture-based funding strategies.
- Trump’s Bitcoin order prompts agencies and U.S. states to expand their reserves without increasing taxes.
- Arizona's dual crypto-reserve bills could serve as a blueprint for other states.
Arizona’s House of Representatives has revived and passed House Bill 2324, authorizing the creation of a state-run Bitcoin and Digital Assets Reserve Fund financed entirely through cryptocurrencies seized in criminal cases.
On June 24, the House approved the measure in a 34-22 vote, just one week after the Senate narrowly passed it 16-14. This comes after the bill initially failed in a House vote in May.
If signed into law, HB 2324 will authorize the State Treasurer to manage the reserve. The fund will handle the seizure, storage, sale, and reinvestment of Bitcoin, stablecoins, and other virtual currencies obtained via asset forfeiture.
Arizona’s Approach to Digital Assets: A Model for Other States?
The bill will direct the first $300,000 from each forfeiture to the Attorney General’s Anti-Racketeering Revolving Fund.
Any remaining proceeds will be distributed across three key funds, with 50% of the proceeds designated to support the Anti-Racketeering Revolving Fund, which aims to enhance law enforcement efforts.
Twenty-five percent will be directed to the State General Fund for broader budgetary use, and the final 25% will flow into the Bitcoin and Digital Assets Reserve Fund.
This legislation marks Arizona’s second crypto reserve initiative in 2025.
Just two months earlier, Governor Katie Hobbs of Arizona signed HB 2749, which authorized the state to retain unclaimed crypto assets in their native form and allocate staking rewards into a dedicated fund.
In early May, she vetoed SB 1025, which would have permitted up to 10% of state treasury and pension assets to be invested in Bitcoin, and SB 1373, a companion bill for a seizure-funded reserve.
Conversely, she supported HB 2387, imposing stricter regulations on crypto ATMs to curb fraud and money laundering.
Together, these measures create a comprehensive framework for handling both abandoned and forfeited digital assets.
While Governor Hobbs has maintained a cautious oversight of crypto activities, balancing innovation in digital asset management with protection of taxpayer funds against market volatility, she now faces a pivotal decision.
With HB 2324 now on her desk, the governor must decide whether to endorse Arizona’s latest foray into state-managed digital assets.
If enacted, Arizona will join a growing number of U.S. states establishing Bitcoin reserve funds, following similar moves by New Hampshire and Texas. In June, Texas enacted SB 21, authorizing its State Comptroller to manage and invest in cryptocurrencies with market capitalizations exceeding $500 billion.
Legislation, Public Trust, and Institutions: Crypto Adoption Trinity?
Meanwhile, at the Bitcoin 2025 Conference, White House AI and crypto czar David Sacks urged federal agencies to identify unspent budgets and reallocate them toward Bitcoin purchases as per President Trump’s March 6 order.
This budget-neutral approach would enable agencies to increase their U.S. holdings without raising taxes or debt, marking a clear shift toward long-term reserves, as sales have remained paused since January 2025.
Legislative momentum and growing public acceptance have encouraged private sector adoption.
Anthony Pompliano’s ProCap Financial is going public via a $1 billion SPAC merger, combining a $750 million capital raise with a $1 billion Bitcoin treasury.
ProCap will actively manage its Bitcoin through lending, yield generation, and structured financial tools to produce revenue, emulating the strategy pioneered by Michael Saylor at Strategy.
Jimmy Aki
Drawing from his background in economics, Jimmy has monitored blockchain development for years, firmly believing in its power to democratise finance. Beyond offering commentary on the latest crypto developments, he also spends his time analysing open-source codes of promising projects on GitHub. Jimmy holds Bitcoin and Ethereum.
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