Arizona Governor Katie Hobbs has made a significant decision by vetoing a bill that would have allowed the state to hold Bitcoin as part of its official reserves, effectively halting efforts to make Arizona the first US state to adopt such a policy. The Digital Assets Strategic Reserve bill, which aimed to enable Arizona to invest seized funds into Bitcoin (BTC) and create a reserve managed by state officials, was formally rejected on Friday, as per an update on the Arizona State Legislature’s website.
In a statement addressed to Warren Petersen, the President of the Arizona Senate, Governor Hobbs explained her decision, stating, “Today, I vetoed Senate Bill 1025. The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments. Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency.”
The bill had previously passed a final vote in the state House, with 31 members of the Arizona House voting in favor and 25 opposing. Governor Hobbs had made it clear that she would veto any legislation that was not tied to a bipartisan agreement on disability funding.
Meanwhile, a companion bill, SB1373, which would have authorized the state treasurer to allocate up to 10% of Arizona’s rainy-day fund into digital assets like Bitcoin, has not yet reached a final vote. Arizona’s stance on Bitcoin reserves aligns with several other states where similar efforts have faced obstacles. Proposals in Oklahoma, Montana, South Dakota, and Wyoming have either stalled or been withdrawn in recent months.
In a contrasting move, North Carolina’s House approved the Digital Assets Investment Act on April 30. This act allows the state treasurer to invest up to 5% of certain funds in approved cryptocurrencies. The bill has now been passed to the state Senate for further consideration.
On the federal level, there has been a push from US President Donald Trump and Republican lawmakers to create Bitcoin reserves. Trump signed an executive order in March proposing a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile.”
While Arizona’s attempt to adopt Bitcoin reserves did not come to fruition, the debate around the integration of digital assets at the state and federal level continues to evolve. The decision by Governor Hobbs underscores the cautious approach that some states are taking towards adopting cryptocurrencies into official reserves.
Leave a Reply