Arizona Governor Vetoes Bitcoin Reserve Bill

Bitcoin advocates and some government officials have expressed disappointment and criticism following Arizona Governor Katie Hobbs’ decision to veto a bill that would have allowed the state to hold Bitcoin as part of its official reserves. The Arizona Strategic Bitcoin Reserve Act, co-sponsored by State Senator Wendy Rogers and State Representative Jeff Weninger, aimed to permit Arizona to invest seized funds into Bitcoin and create a reserve managed by state officials. However, Hobbs vetoed the bill on May 2, citing the need for sound and informed investments.

Casa co-founder and cypherpunk Jameson Lopp criticized the governor's move, stating that it would "age poorly." Bitcoin entrepreneur Anthony Pompliano was equally critical, saying, "Imagine the ignorance of a politician to believe they can make investment decisions." Pompliano further suggested that if Hobbs couldn't outperform Bitcoin, she should buy it. Crypto lawyer Andrew Gordon echoed these sentiments, calling for more elected officials who understand that Bitcoin and crypto are the future.

Rogers, who co-sponsored the bill, expressed her disappointment with the veto. She emphasized that politicians often misunderstand the value of Bitcoin, stating, "Bitcoin doesn’t need Arizona, Arizona needs Bitcoin." Rogers also pointed out that Arizona’s state retirement system already holds stocks of Michael Saylor’s Strategy, which is essentially a leveraged Bitcoin ETF. She vowed to refile the bill during the next session, stating, "Arizona’s Strategic Bitcoin Reserve bill will be back. HODL."

The veto has also drawn support from crypto skeptics. Peter Schiff, a well-known critic of cryptocurrencies, sided with Hobbs, arguing that the government should not be using public funds to speculate in cryptocurrencies. This stance highlights the ongoing debate over the role of cryptocurrencies in government reserves and the broader financial system.

Arizona's vetoed bill is part of a broader trend in the United States, where several states have attempted to establish Bitcoin reserves but have faced challenges. Similar proposals in Oklahoma, Montana, South Dakota, and Wyoming have stalled or been withdrawn recently. If Arizona had passed the bill, it would have become the first US state to establish a Bitcoin Strategic Reserve.

The controversy surrounding the veto underscores the divisive nature of cryptocurrencies in the political and financial landscape. While some see Bitcoin as a forward-thinking investment, others view it as a risky and speculative asset. The debate is likely to continue as more states consider similar legislation and as the broader financial community grapples with the implications of digital currencies.