Arizona Governor shoots down plans for state bitcoin Reserve

Arizona Governor shoots down plans for state bitcoin Reserve

Arizona Governor Katie Hobbs has vetoed a bill that would have allowed the state to invest in Bitcoin and other digital assets, effectively ending efforts to make Arizona the first U.S. state to adopt such a policy. The veto comes as a setback for crypto advocates but aligns with Governor Hobbs' earlier stance on exposing public funds to untested investments.

The bill, Senate Bill 1025, also known as the "Arizona Strategic Bitcoin Reserve Act," aimed to permit state officials to invest up to 10% of the state treasury and pension assets in digital assets like Bitcoin. Had it become law, Arizona would have been the first state in the nation to adopt such a policy. However, Governor Hobbs cited concerns over the credibility of digital assets as an investment and the strength of Arizona's retirement system, which she believes is built on proven investment strategies [1].

The veto is not unexpected given Governor Hobbs' earlier threats to block legislation over unresolved disability funding. She has now vetoed 75 bills in 2025, surpassing her record of 73 vetoes in 2024 and 143 in 2023, making her the governor with the most vetoes in Arizona history [1].

Arizona joins other states where comparable initiatives have failed to advance, including Oklahoma, Montana, South Dakota, and Wyoming. Meanwhile, North Carolina's House passed the Digital Assets Investment Act on April 30, allowing the state treasurer to invest up to 5% of certain funds in approved cryptocurrencies [3].

The state-level efforts to create Bitcoin reserves come amid a push from U.S. President Donald Trump and Republican lawmakers to establish a "Strategic Bitcoin Reserve" and a "Digital Asset Stockpile" in the federal government [3].

A second bill, SB1373, which would authorize 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. The fate of this bill remains uncertain, but it is expected to reintroduce crypto-related financial mechanisms in a potentially revised form, which may be more aligned with the governor's cautionary stance [4].

The crypto market, valued at $2.99 trillion at press time, has seen a market rebound in the past two weeks, with Bitcoin trading at $96,011 and other top cryptocurrencies like Ethereum and Solana reporting respective gains in the past month [2].

References:
[1] https://cryptobriefing.com/bitcoin-state-reserves-veto-arizona/
[2] https://bitcoinist.com/arizona-state-governor-vetos-bitcoin-reserve-bill/
[3] https://cointelegraph.com/news/arizona-bitcoin-reserve-bill-vetoed-by-governor
[4] https://timestabloid.com/arizona-governor-vetoes-bill-to-allow-the-state-to-buy-xrp-bitcoin-ethereum/