02.07.2025 22:25

Arizona Governor Katie Hobbs vetoed House Bill 2324 on Tuesday, effectively killing a proposal to create a state cryptocurrency reserve fund. This decision follows the bill's tumultuous journey through the Arizona legislature, which included initial defeat, subsequent revival by the Senate, and final House approval by a 34-22 vote on June 24th. Overriding this veto requires a two-thirds supermajority in both the House and Senate, a highly improbable scenario.

The proposed “Bitcoin and Digital Assets Reserve Fund” aimed to manage digital assets confiscated by the state. Under the bill's provisions, the Attorney General's office would have received the first $300,000 of seized cryptocurrency from felony forfeitures. Any amount exceeding this threshold would have been divided, with 25% allocated to the state's general fund and another 25% directed to the newly created reserve fund. The remaining portion would have remained with the Attorney General's office.

Governor Hobbs' veto reflects her consistent opposition to cryptocurrency-related legislation. This isn't an isolated instance; she previously rejected other cryptocurrency proposals that successfully passed both legislative chambers. One such example is Senate Bill 1025, which suggested establishing an Arizona Strategic Bitcoin Reserve and investing up to 10% of state funds in Bitcoin. In May, she voiced concerns about cryptocurrencies representing "untested investments," justifying her veto. A separate bill allowing the state treasury to utilize confiscated assets for investment purposes also met a similar fate. The governor's actions demonstrate a clear policy stance against incorporating cryptocurrencies into Arizona's financial system. Sources from internet resources confirm this information.