Arizona Governor Vetoes Bill HB2324 on Seized Cryptocurrency Reserve Fund

On July 1, Arizona Governor Katie Hobbs (Democrat) exercised her veto power against Bill HB2324, which would have established a reserve fund for cryptocurrencies seized during criminal investigations. This bill could have marked the state's first introduction of a cryptocurrency reserve fund. Governor Hobbs explained her veto by stating that transferring seized assets from local to state jurisdiction could potentially impair the cooperative relationship between local law enforcement agencies and the state. According to the Governor, removing seized cryptocurrencies from local law enforcement and placing them under state management could result in local agencies losing incentives related to the seizure of these assets.