Arizona Governor Katie Hobbs vetoed legislation aimed at creating a reserve fund for managing cryptocurrency assets seized in criminal activities, citing potential harm to local law enforcement collaboration.
House Bill 2324, which passed last week with a 34-22 vote, sought to establish a “Bitcoin and Digital Assets Reserve Fund” to handle cryptocurrencies like Bitcoin seized through criminal activities. Governor Hobbs rejected the bill, expressing concerns that it would discourage local law enforcement agencies from cooperating with state authorities on digital asset seizures.
Arizona, known for its crypto-friendly stance, previously approved a law (HB 2749) in May to manage abandoned or unclaimed cryptocurrency assets through a state-controlled fund, making it the second state after New Hampshire to adopt such a measure.
Regulatory efforts regarding cryptocurrencies continue in Arizona, including Senate Bill 1062, which proposes recognizing Bitcoin and other cryptocurrencies as official legal tender in the state.
