Arizona Governor Katie Hobbs recently declined to sign House Bill 2324, a piece of legislation that proposed the establishment of a reserve fund for cryptocurrency assets confiscated by law enforcement. In an official veto letter distributed on Tuesday, Governor Hobbs expressed concerns that the bill could potentially discourage local law enforcement agencies from cooperating with the state on matters of digital asset seizure by transferring the confiscated assets away from local jurisdictions. The bill had previously passed the House with a 34-22 vote.
The vetoed HB 2324 outlined the provision for the State Treasurer to form the Bitcoin and Digital Assets Reserve Fund, which would manage the crypto assets acquired via criminal forfeiture. With the governor’s consent, the state would have been able to invest, reinvest, and divest funds in crypto assets or exchange-traded funds that include digital assets.
In May, Arizona implemented HB 2749, thereby becoming the second U.S. state to enact a crypto reserve bill into law, following New Hampshire. While HB 2749 concentrates on unclaimed cryptocurrencies deemed as abandoned, the now-rejected HB 2324 was specifically designed for crypto assets acquired through forfeiture.
Apart from these, Arizona is contemplating various other laws concerning crypto, such as HB 2387, which intends to regulate operators of cryptocurrency kiosks.
Disclaimer: The Block is a stand-alone media entity delivering news, research, and data. Foresight Ventures, a major investor in The Block as of November 2023, also invests in other crypto companies. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block operates independently, providing objective, impactful, and timely crypto industry information. This article is purely informational and should not be used as legal, tax, investment, financial, or other advice.
