Arizona Governor Katie Hobbs has rejected House Bill 2324, which would have established a state-managed reserve fund for seized cryptocurrencies.
The bill, which passed the House last week by a vote of 34 to 22, aimed to give the State Treasurer authority over confiscated digital assets, allowing for investment in cryptocurrencies or related exchange-traded funds (ETFs).
In her veto letter, Hobbs argued that the measure would discourage local law enforcement from collaborating with the state in the seizure of digital assets by diverting funds from local jurisdictions.
This comes on the heels of Arizona's recent enactment of HB 2749, a separate law addressing unclaimed crypto assets.