The last two months have been full of ups and downs for the Bitcoin eeserve bills and regulations. While one state moves ahead with a bill promoting the use of crypto assets, other rejects it.
The last two months have been full of ups and downs for Bitcoin as we covered the assembly and rejection of bills and regulations. While one state moves ahead with a bill promoting the use of crypto assets, another rejects it.
Now, Arizona Governor Katie Hobbs has vetoed two major crypto bills after giving a green light to one last week. On Monday, the Governor’s office shared that the two bills, SB 1373 and SB 1024, have been vetoed by Katie Hobbs. The first bill, SB 1373, would have allowed Arizona to hold cryptocurrencies like Bitcoin as part of its state reserve assets. The state could have reserved up to 10% of Arizona’s rainy-day funds in digital assets like Bitcoin.
The Governor shared her letter to Senate President Warren Petersen, explaining her decision. In the letter, Hobbs stated that her administration has already signed legislation permitting the state to utilize cryptocurrency without placing general fund dollars at risk. This, she believes, is the responsible path to take, given the current volatility in the cryptocurrency market.
"This administration has already signed legislation allowing the state to utilize cryptocurrency without placing general fund dollars at risk, which is the responsible path to take given the volatility of the market," wrote Gov. Hobbs. "We can and should be doing more to integrate digital assets into our legal framework in a measured and prudent manner."
Hobbs was referring to Arizona House Bill 2749, which she signed on May 7. Under this legislation, Arizona can have digital assets like Bitcoin that are unclaimed as part of the state’s reserve. However, if the ongoing SB 1373 bill cleared the Governor’s table, Arizona would have been the second US state to have a Bitcoin reserve after New Hampshire, which passed a similar bill just last week.
The other major bill that was vetoed by the Governor is SB 1024, which would have enabled citizens to make civil payments, including taxes, using cryptocurrencies. This would have made Arizona the first US state to integrate crypto into both state treasury and payment systems. But in a clear signal that the state isn' isnt ready to take that leap, Hobbs shot down both.
This isn’t the first time Gov. Hobbs has blocked pro-crypto legislation. In 2023, she vetoed a bill that would have made Bitcoin legal tender in Arizona, arguing that such a move was clearly within the jurisdiction of the federal government, not individual states.
Arizona’s decision is part of a growing pattern of cautious state-level Bitcoin reserve bills. While states like New Hampshire, Wyoming, and Florida are taking a pro-crypto stance, others are hesitating, especially in the absence of federal direction. But more and more states are gradually opening up, evident last week as Bitcoin surged beyond $100K as three US states approved crypto BTC reserve laws in 24 hours.
