Arizona Governor Katie Hobbs Vetoes a Bill That Would Have Allowed the State to Invest in Bitcoin

A proposal that would have allowed the state to invest up to 10% of its public funds in Bitcoin and other digital assets.

A bill that would have allowed Arizona to invest up to 10% of its public funds in Bitcoin and other digital assets has been vetoed by Governor Katie Hobbs.

The measure, which was passed by the state legislature, had been the subject of much debate. Supporters argued that the move would allow Arizona to capitalize on the emerging cryptocurrency market and become a leader in integrating digital assets into public finance.

However, Governor Hobbs, a Democrat, expressed concerns over the volatility and untested nature of cryptocurrencies. She said that Arizonans’ retirement funds are not the place for the state to try out new investment ideas.

“Arizonans’ retirement funds are best served by a conservative and informed approach to investing, which has helped make the Arizona State Retirement System one of the strongest in the nation,” Governor Hobbs stated in her veto message.

This stance contrasts with that of former President Donald Trump, who mandated the creation of a U.S. reserve funded by Bitcoin assets seized through legal proceedings.

The bill, known as the Arizona Strategic Bitcoin Reserve Act, aimed to establish a state-managed BTC reserve by investing seized funds in Bitcoin.

Despite the governor’s veto, the move highlights the growing interest in integrating digital assets into public finances at the state level.

As the cryptocurrency market continues to evolve, it will be interesting to observe how state-level investment strategies adapt and the role that Bitcoin plays in the future of public funds management.