Arizona Governor Katie Hobbs Vetoes Bitcoin Reserve Bill, Following the Path of Other US States

Arizona State Governor Katie Hobbs has vetoed a legislative bill that would have allowed the creation of a Bitcoin reserve. The Grand Canyon state joins a growing list of other US states where legislative efforts to direct state investment to Bitcoin have proven futile.

Arizona Governor Katie Hobbs has vetoed a bill that would have allowed the creation of a Bitcoin reserve, keeping the Grand Canyon state out of the growing list of states where such efforts have proven futile.

In an executive letter dated May 2, Governor Katie Hobbs of Arizona vetoed State Senate Bill 1025 that aimed to adopt digital assets as part of the state’s official reserves.

Specifically, S.B. 1025 would have allowed the Arizona state treasury to allocate 10% of its managed assets into Bitcoin and other virtual assets. Furthermore, the bill also proposed the creation of a Digital Assets Strategic Reserve Fund designed to hold all seized crypto assets from criminal and illegal operations.

Now, the Arizona Senate House, headed by Hon. Warren Petersen, approved the bill in a keenly contested 31-25 vote on April 29 in a move to become the first state to establish a Bitcoin reserve after the US Federal Government.

However, Governor Hobbs has aligned with the dissenting votes and rejected the provisions of S.B. 1025 upon presentation for executive approval. The former social worker and Senate minority leader also explained the reason for her decision, adding that the state should focus on other investment priorities.

Governor Hobbs said: “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. Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency.”

Following this development, Arizona drops out of the race for the first US state to create a Bitcoin reserve following the push by the Donald Trump Administration to establish a crypto-friendly environment in the US.

Earlier this year, several US states have moved to introduce legislation related to creating a Bitcoin reserve. Among these states are New Hampshire and North Carolina, which have seen their proposed bills successfully pass the House Committees.

However, other states like Oklahoma, Pennsylvania, North Dakota, Wyoming, Montana, South Dakota, and now Arizona have had their proposed reserve bill rejected.