The Arizona House of Representatives passed Bill HB2324 on Tuesday, advancing legislation aimed at creating a state-managed reserve of Bitcoin and other digital assets obtained through criminal forfeiture. The bill, which was revived earlier this month, cleared the state Senate last Friday and now heads to Governor Katie Hobbs for approval.

HB2324 proposes expanding Arizona’s asset forfeiture laws to include digital assets and outlines modern custody protocols. These include blockchain-based access controls, third-party custodians, and flexible asset management options such as storage in digital wallets, settlement via licensed crypto exchanges, or holding assets based on market conditions.

If signed into law, HB2324 would become Arizona’s second major effort to establish a cryptocurrency reserve. Governor Hobbs has previously vetoed two similar proposals—SB1373 and SB1025—which aimed to allow direct state investment in Bitcoin. So far, the only crypto reserve legislation she has signed is HB2749, a more limited initiative tied to unclaimed property.