Arizona Governor Hobbs Vetoes Bitcoin Reserve Bill

As interest in Bitcoin [BTC]’s role in state-level financial planning grows, Arizona briefly captured national attention with its bold proposal.

As interest in Bitcoin's role in state-level financial planning has been heating up, Arizona briefly captured national attention with its proposal.

The state's House narrowly passed Senate Bill 1025, the "Arizona Strategic Bitcoin Reserve Act," which would have established Bitcoin holdings within Arizona's official reserves. The legislation also specified that this digital assets reserve would be funded through seized monies, positioning Arizona as a pioneer among U.S. states.

However, Governor Katie Hobbs has now vetoed the bill, abruptly ending the effort to integrate Bitcoin into the state's financial strategy.

In a statement to President of the Arizona Senate Warren Petersen, Hobbs explained her decision to veto the bill, highlighting her focus on a bipartisan solution for disability funding.

"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. We need to ensure the System's stability and the secure retirement of the state's employees," part of the statement began.

"Arizonans' retirement funds are not the place for the state to try untested investments like virtual currency. For that reason, I have chosen to veto Senate Bill 1025," she added.

What's more?

The Arizona House's close vote on April 28 to approve the bill to create a state-level Bitcoin reserve marked a substantial step toward digital asset integration at the state level.

Despite this progress, Governor Katie Hobbs has followed through on her earlier stance, vetoing the bill due to the absence of bipartisan consensus on disability funding.

Earlier, Hobbs had announced that any bill not related to the pressing issue of funding for people living with disabilities would be vetoed. In her words, "Any bill not already on my desk will be vetoed until we have a serious, bipartisan funding solution that protects health care for Arizonans with disabilities."

Meanwhile, a related proposal, SB1373, which seeks to allow the state treasurer to invest up to 10% of Arizona's rainy-day fund in digital assets like Bitcoin, remains pending a final vote.

The state's actions follow a broader trend across the U.S., where similar legislative efforts in states like Oklahoma, Montana, South Dakota, and Wyoming have failed to gain traction.

While Arizona's proposal was met with a veto, North Carolina is advancing with a more measured approach. On April 30, the state's House passed the Digital Assets Investment Act, permitting the treasurer to allocate up to 5% of select funds into approved cryptocurrencies. The bill now moves to the Senate for consideration.

These state-level initiatives echo a broader narrative playing out at the federal level, where former President Donald Trump and key Republican allies have been advocating for a Strategic Bitcoin Reserve.

Despite an executive order issued in March, Polymarket data showed no confidence that such a reserve would be created within Trump's first 100 days, signaling skepticism around rapid federal adoption.