Arizona Governor blocks bill to create crypto reserve fund from seized assets - Here’s why

Governor Katie Hobbs firmly rejected the proposal, stating it would undermine collaboration with local law enforcement by stripping them of control over seized digital assets.

For those unaware, House Bill 2324 aimed to let Arizonas State Treasurer set up a “Bitcoin and Digital Assets Reserve Fund” to manage crypto assets seized from criminal activities.

Governor Hobbs veto history

This marked Governor Katie Hobbs third veto of Bitcoin [BTC]-related legislation, reaffirming Arizonas cautious stance on crypto exposure in public finance.

In May, she also vetoed proposals that would have allowed state treasurers and retirement systems to allocate up to 10% of funds into Bitcoin and retain seized cryptocurrency.

However, amid multiple rejections, she has approved House Bill 2749, which allows the state to hold unclaimed crypto in its original form, indicating a more nuanced stance rather than outright opposition.

Therefore, in conclusion, while Texas and New Hampshire continue to establish dedicated Bitcoin reserves, Arizona is maintaining strict regulatory oversight.

Still, experts like Pranav Agarwal, independent director at Jetking Infotrain India, believe these legislative roadblocks are unlikely to halt the states evolving approach to digital assets.