While several states are exploring this bold approach, Governor Katie Hobbs' veto reignites the national debate on the future of BTC in public management and institutional finance.
Arizona has rejected an ambitious bill that aimed to integrate bitcoin into its official reserves.
Democratic Governor Katie Hobbs has put an end to the initiative with her veto. Several states are exploring this bold approach, but Governor Katie Hobbs’ veto on Friday has brought a halt to the ambitious bill that would have permitted Arizona to invest a portion of its seized funds in bitcoin.
This bill, passed in April by the State House of Representatives (31 votes for, 25 against), proposed the creation of a strategic bitcoin fund managed by public officials. However, Governor Hobbs has categorically rejected this approach.
“Arizona’s retirement system is one of the strongest in the country because it is based on prudent and informed investments. The retirement funds of Arizonans are not a testing ground for unproven virtual assets,” she stated in a message addressed to the local Senate president.
Another bill, SB1373, which would allow allocating up to 10% of the state’s emergency reserve fund to digital assets like bitcoin, is still awaiting final vote.
Arizona thus joins other states like Montana, South Dakota, and Oklahoma, where similar initiatives have failed. But momentum continues elsewhere. North Carolina, meanwhile, has taken a step forward with the adoption by its House of the Digital Assets Investment Act, allowing investment of 5% of certain funds into cryptocurrencies. The bill is now in the hands of the local Senate. At the federal level, the Trump administration is also pushing for the creation of a “strategic bitcoin reserve” through an executive order signed in March.
The battle for institutional bitcoin is far from over. While Arizona is pulling back, other states like California are heavily investing in Strategy’s BTC shares. Between political caution and strategic vision, bitcoin is gradually asserting itself in American budget debates. State adoption is no longer a question of “if“, but of “when“.
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