Arizona Governor Katie Hobbs has struck down a bill that would have diverted seized cryptocurrency to a state reserve fund, arguing it could undermine local law enforcement efforts.
HB 2324, passed by the House last week, proposed centralizing forfeited digital assets under the State Treasurer’s management.
Hobbs warned the bill would reduce incentives for local agencies to partner with the state on crypto seizures.
The veto leaves intact Arizona’s recent HB 2749, which addresses unclaimed crypto assets, while other proposals—like recognizing crypto as legal tender—remain under consideration.
