tl;dr
Arizona Governor Katie Hobbs vetoed House Bill 2324, which sought to create a Bitcoin and Digital Assets Reserve Fund funded by criminal asset forfeiture, marking the third veto of a digital asset reserve bill this session. The bill passed the Senate and House but was rejected due to concerns it wou...
Arizona Governor Katie Hobbs has vetoed House Bill 2324, which aimed to create a ‘Bitcoin and Digital Assets Reserve Fund’ funded by criminal asset forfeiture. This marks the third veto of a digital asset reserve bill during the current legislative session, underscoring a cautious approach toward integrating cryptocurrency into the state’s financial framework.
The bill had previously failed a House vote but was revived and passed the Senate before clearing the House again on June 24 with a 34-22 vote. Governor Hobbs rejected the legislation, citing concerns in her veto letter that it would disincentivize local law enforcement collaboration by removing seized digital assets from local jurisdictions.
This recent veto follows the rejection of Senate Bills 1025 and 1373, which proposed allowing the state to invest public funds in Bitcoin and digital assets and establishing a strategic reserve fund funded by seized assets and state appropriations. Additionally, Senate Bill 1024, which would have permitted state agencies to accept cryptocurrency for fines, taxes, and fees, was also vetoed.
Despite these setbacks, Arizona passed HB 2749 on May 7, which establishes a reserve funded by unclaimed property, including virtual currencies, airdrops, and staking rewards. This law does not authorize direct cryptocurrency investments but represents a cautious compromise that avoids using state funds while incorporating digital assets into public finance, reflecting Governor Hobbs’ conservative fiscal management.
Meanwhile, Connecticut has enacted stricter measures. Governor Ned Lamont signed legislation on June 30 prohibiting the state and its subdivisions from accepting virtual currency payments or from purchasing, holding, investing in, or creating digital asset reserves.
Nevertheless, interest in establishing Bitcoin reserves at the state level remains robust, with 17 active bills across eight states according to Bitcoin Laws data. This ongoing legislative activity highlights the continued momentum and diverse approaches states are taking toward integrating digital assets into public finance systems.