Arizona Senate Makes Bold Move: Bitcoin Reserve Bill Back from the Dead

In a dramatic U-turn, Arizona's Senate breathes new life into its Bitcoin reserve proposal—proving crypto's political clout is anything but dead.

The Rebound Play

After a reconsideration vote that caught even seasoned watchers off-guard, the bill's revival signals growing institutional appetite for crypto—despite Wall Street's usual 'this time it's different' skepticism.

Why It Matters

If passed, Arizona could become the first state to hold BTC as part of its treasury reserves—a middle finger to dollar purists and a potential blueprint for other states eyeing crypto's volatility (and upside).

The Fine Print

No details on proposed allocation size yet—typical political theater, keeping both crypto bulls and fiscal hawks guessing. But one thing's clear: the establishment's starting to hedge its bets.

The Bottom Line

Whether this is visionary policy or political posturing, Arizona just made the first move in what could become a very expensive game of chicken with the Fed.

Source: bitcoin Laws

HB 2324 must receive a majority vote from the 60 Arizona House members — 33 of which are Republicans — for it to be sent to Governor Katie Hobbs’ desk for approval.

Bill to split Bitcoin reserve funds between departments

If HB 2324 passes, the first $300,000 worth of digital assets in a criminal forfeiture WOULD head to the Attorney General’s office.

Then, any amount over that would be split 50% with the Attorney General, 25% to the state general fund and 25% to the new digital assets reserve fund, the bill states.

The bill, sponsored by Republican Senator Jeff Weninger, would also expand Arizona’s forfeiture laws to include digital assets, establishing provisions for their seizure, storage and allocation. 

Arizona would be able to seize digital assets from individuals who are deceased, deported, fled, have been granted immunity or have abandoned the property, provided the state can prove that no known owner exists, that diligent efforts were made to identify one and that no one has claimed legal ownership.

Arizona Governor has signed a Bitcoin bill

Governor Hobbs signed HB 2749 into law on May 7, which allows the state to keep unclaimed crypto and establish a Bitcoin reserve fund that won’t use any taxpayer money or state funds.

The state’s custodians can stake the crypto to earn rewards or receive airdrops, which can then be deposited into what Arizona has called a “Bitcoin and Digital Assets Reserve Fund.”

Hobbs vetoes two crypto bills

Another Bitcoin reserve bill that reached Hobbs’ desk was Senate Bill 1025, which proposed the creation of the Arizona Strategic Bitcoin Reserve Act (2025) and would have allowed the state treasurer to invest up to 10% in Bitcoin and potentially other crypto assets.

However, Hobbs vetoed the bill on May 2, citing concerns that retirement funds shouldn’t be exposed to “untested investments like VIRTUAL currency.”

Governor Hobbs’ letter explaining her decision to veto SB 1025. Source: State of Arizona Office of the Governor

Hobbs also vetoed SB 1373 on May 12, which aimed to create the “Digital Assets Strategic Reserve Fund.”

“Current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars,” Hobbs stated in her veto letter. “I have already signed legislation this session which allows the state to utilize cryptocurrency without placing general fund dollars at risk.”