Arizona governor vetoes bill seeking to create reserve fund from seized crypto

Arizona Governor Katie Hobbs has vetoed House Bill 2324, which sought to create a reserve fund for seized cryptocurrency assets.

In a veto letter released Tuesday, Hobbs stated that the bill "disincentives local law enforcement from working with the state on digital asset forfeiture by removing seized assets from local jurisdictions." The House passed the bill in a 34-22 vote last week.

HB 2324 proposed granting the State Treasurer the authority to create the Bitcoin and Digital Assets Reserve Fund, which would oversee crypto assets obtained through criminal forfeiture. A governor's approval would have allowed the state to invest, reinvest, and divest funds in crypto assets or exchange-traded funds containing digital assets. 

In May, Arizona enacted HB 2749, becoming the second U.S. state to pass a crypto reserve bill into law, following in New Hampshire's footsteps. While HB 2749 focuses on unclaimed crypto assets presumed abandoned, the vetoed HB 2324 targeted crypto assets obtained through forfeiture.

Arizona is also considering several other bills related to crypto, including HB 2387, which regulates cryptocurrency kiosk operators. 

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