Arizona Governor Vetoes State Bitcoin Reserve Bill

Arizona Governor Katie Hobbs has vetoed Senate Bill 1025, which aimed to establish a Bitcoin reserve for the state. This decision, made on May 2, marks the first instance where a sitting US governor has rejected a state-backed strategic Bitcoin reserve initiative. Despite growing interest in such measures across several states, Hobbs emphasized the need for the Arizona State Retirement System (ASRS) to prioritize stable, well-vetted investments. She described virtual currencies as “untested” and unsuitable for the retirement savings of Arizona residents, stating that the ASRS is one of the strongest in the nation due to its sound and informed investment strategies.

Governor Hobbs’ stance reflects the broader skepticism within the Democratic Party toward the integration of crypto in state financial systems. This veto comes shortly after Arizona’s legislature made history as the first in the US to pass an SBR bill in both chambers, garnering bipartisan support. Senate Bill 1025 was one of two digital asset-related proposals forwarded to Hobbs’ desk this session. The second proposal, Senate Bill 1373, would grant Arizona the authority to retain cryptocurrencies obtained through legal seizures and empower the state treasurer to lend these assets to generate additional income. The status of this bill remains unclear following Hobbs’ opposition to SB 1025.

Arizona now joins a group of states—including Oklahoma, Montana, North Dakota, and Wyoming—where efforts to formalize Bitcoin reserves have stalled or failed. However, momentum continues elsewhere. New Hampshire is nearing a potential breakthrough, with its SBR proposal advancing past committee review and now awaiting a full vote in the second legislative chamber. If approved, it will proceed to the governor for final consideration. At the national level, Senator Cynthia Lummis has welcomed recent support from President Donald Trump for her plan to establish a federal Bitcoin reserve. Lummis is pushing the BITCOIN Act bill, which would allow the US to acquire up to 1 million BTC over five years. The lawmaker claims such a move would help stabilize US fiscal policy and enhance the nation’s role in global financial innovation.