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Arizona Governor Katie Hobbs has vetoed Senate Bill 1025, the Arizona Strategic Bitcoin Reserve Act, which would have allowed the state to invest in Bitcoin as part of its official reserves. The bill aimed to permit the Arizona State Treasurer to invest up to 10% of state funds into digital assets, including Bitcoin. Governor Hobbs cited concerns over using public funds for “untested assets” as the primary reason for the veto.
She emphasized that the Arizona State Retirement System is one of the strongest in the nation due to its sound and informed investments. The veto has drawn criticism from Bitcoin proponents and lawmakers who supported the bill. State Senator Wendy Rogers, a co-sponsor of the bill, expressed her disappointment, stating, “Bitcoin doesn’t need Arizona, Arizona needs Bitcoin.” She indicated plans to refile the bill in the next legislative session. Other crypto advocates, including entrepreneur Anthony Pompliano and Casa co-founder Jameson Lopp, also voiced their disapproval, suggesting that the veto reflects a lack of understanding of the potential benefits of Bitcoin investments.
Conversely, some critics, like economist Peter Schiff, supported the governor’s decision, arguing that public funds should not be used to speculate in cryptocurrencies. This development places Arizona among several U.S. states where similar efforts to establish state-level Bitcoin reserves have stalled or been withdrawn.
