Arizona Governor Katie Hobbs has vetoed House Bill 2324, which proposed the creation of a reserve fund for Bitcoin and digital assets. The veto was issued due to concerns about its impact on local law enforcement cooperation.
What HB2324 Aimed to Do
HB2324 would have allowed the state to collect and store seized cryptocurrencies in a reserve fund. The first $300,000 of these assets was to be directed to the state Attorney General’s office. The remaining funds were to be split, with half remaining with the Attorney General, a quarter going to the state’s general fund, and the final quarter going into the proposed reserve.
The plan included secure storage requirements, such as third-party custodians and institutional-level management to handle the crypto assets responsibly.
Consistent Policy Approach
Governor Hobbs has demonstrated a cautious stance on cryptocurrency legislation. Her veto follows similar rejections of bills such as SB1373 and SB1025, which would have allowed for broader state investment in digital assets.
However, Hobbs recently signed another crypto-related bill, HB2749, which created a separate digital reserve using unclaimed property funds, indicating a preference for controlled crypto adoption.
Response from Bill Supporters
Supporters of HB2324 argued that the bill would help Arizona modernize its asset management and leverage growing digital asset markets. Despite the veto, proponents continue to emphasize its significance for the state's financial future.
Thus, Governor Hobbs' veto of HB2324 emphasizes the need for a balance between asset management and the effective operation of law enforcement at local jurisdictions.
