The governor of Arizona has rejected a invoice that may have seen the US state maintain on to seized crypto belongings in a fund.
Arizona Governor Katie Hobbs vetoed Home Invoice 2324 on Tuesday, stating in a letter that it “disincentivizes native enforcement from working with the state on digital asset forfeiture by eradicating seized belongings from native jurisdictions.”
The state’s Home voted the invoice down throughout its third studying in Could, however the Senate revived it in a reconsideration vote final month. The measure was then handed by the Home in a 34-22 vote on June 24.
The governor’s veto could possibly be overridden with a two-thirds vote by the Home and Senate, however that seems unlikely to occur until some lawmakers change their vote.
The invoice would have created a “Bitcoin and Digital Belongings Reserve Fund” to handle any digital belongings forfeited to the state.
Katie Hobbs’ veto letter for HB 2324. Supply: Arizona Governor’s Workplace
The invoice stipulated that the primary $300,000 price of crypto in a legal forfeiture would go to the legal professional normal’s workplace.
Any quantity over that may have been cut up 50% with the AG, 25% to the state normal fund, and 25% to the brand new reserve fund.
Hobbs’ historical past of crypto invoice rejection
Hobbs has vetoed different crypto payments that had made their approach by the state’s Home and Senate.
In Could, she vetoed Senate Invoice 1025, which might have created the Arizona Strategic Bitcoin Reserve and allowed the state treasurer to take a position as much as 10% in Bitcoin (BTC), saying cryptocurrencies are “untested investments.”
Associated: Bitcoiners blast Arizona governor’s ‘ignorance’ after Bitcoin invoice veto
She additionally vetoed Senate Invoice 1373, a Strategic Digital Belongings Reserve Invoice that may have additionally allowed the state to create a treasury from seized belongings.
🇺🇸 JUST IN: Arizona Governor Katie Hobbs has vetoed the state’s digital belongings reserve fund invoice HB2324.
She claimed the invoice would forestall native legislation enforcement from cooperating with the state on digital asset forfeiture by eradicating seized belongings from native jurisdictions. pic.twitter.com/d4LI2j8ASH
— Cointelegraph (@Cointelegraph) July 2, 2025
Arizona permits crypto reserve fund invoice
Three crypto payments have now been rejected by the Arizona governor, and just one has made it by.
Arizona Home Invoice 2749, enacted in Could, amends state statutes to combine crypto belongings into Arizona’s monetary and unclaimed property frameworks by establishing the Bitcoin and Digital Belongings Reserve Fund, managed by the state treasurer.
State’s race to move crypto legal guidelines
Different US states are additionally contemplating payments that may create reserves to stockpile Bitcoin and crypto.
Final month, Texas Governor Greg Abbott signed a invoice to create the Texas Strategic Bitcoin Reserve, a state-managed fund that can maintain Bitcoin as a part of the state’s long-term belongings.
New Hampshire additionally handed a invoice in Could enabling the state to “spend money on cryptocurrency and treasured metals”, whereas six different state legislatures have payments at varied phases of passage that intention to create a crypto reserve, in response to information from Bitcoin Legal guidelines.
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