Bitcoiners and Arizona Governor Katie Hobbs Have Criticized Her Decision to Veto a Bitcoin Reserve Bill

Bitcoiners and United States government officials have criticized Arizona Governor Katie Hobbs's decision to veto a bill that would have allowed the state to hold Bitcoin as part of its official reserves.

Arizona Governor Katie Hobbs has been met with backlash from both Bitcoiners and United States government officials for her decision to strike down a bill that would have allowed the state to hold Bitcoin (BTC) as part of its official reserves.

“This will age poorly,” Casa co-founder and cypherpunk Jameson Lopp said in a May 3 X post. Bitcoin (BTC) entrepreneur Anthony Pompliano said, “Imagine the ignorance of a politician to believe they can make investment decisions.”

If she can’t outperform Bitcoin, she must buy it,” Pompliano said.

Crypto lawyer Andrew Gordon said, “We need more elected officials who understand that Bitcoin and crypto are the future.”

State Senator Wendy Rogers, who co-sponsored the bill with State Representative Jeff Weninger, also expressed her disappointment.

“Politicians don’t understand that Bitcoin doesn’t need Arizona. Arizona needs Bitcoin,” Rogers said.

On May 2, Hobbs vetoed the Arizona Strategic Bitcoin Reserve Act, which would have permitted Arizona to invest seized funds into Bitcoin and create a reserve managed by state officials.

“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,” Hobbs said.

Rogers said she would be refiling the bill during her next session. Rogers also pointed out that Arizona’s state retirement system already holds stocks of Michael Saylor’s Strategy (MSTR).

“Which is basically a leveraged Bitcoin ETF. Arizona’s Strategic Bitcoin Reserve bill will be back. HODL,” Rogers said.

The stock price of Strategy rose 32% in April, the most significant monthly gain since November 2024.

Announcing the veto of the Arizona Strategic Bitcoin Reserve Act, Governor Hobbs stated, "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.

"This bill would have the state invest in Bitcoin and create a new administrative structure to manage it, despite the fact that the state government is not authorized to make such investments and the legislation does not provide any administrative framework for this purpose.

"Furthermore, the bill would subject the state to the volatility of the cryptocurrency market and could ultimately diminish the rate of return on investments made by the state retirement system."

However, a recent report by crypto news outlet Token Post claims that several reports have stated that the bill was struck down by Governor Hobbs due to advice from state officials.

According to reports from Benzinga, Governor Hobbs was advised against passing the bill by officials from the Arizona Department of Revenue and the Arizona State Treasurer’s Office.

The report adds that the governor was told that the bill would create administrative and legal issues for the state.

"It is clear that the intent of House Bill 2477 is to authorize the state to invest in Bitcoin. However, the legislation does not provide any administrative structure for this purpose. Moreover, state government is not authorized to make such investments," Governor Hobbs was quoted as saying.

"The bill would create a new administrative structure to manage Bitcoin, but it does not specify the source of the funds for this purpose. It is also not clear how this new administrative body would interact with existing state agencies and officials."

According to reports from AZ Central, the bill was co-sponsored by State Representative Jeff Weninger and State Senator Wendy Rogers.

Weninger expressed his disappointment over the governor’s decision.

"It is unfortunate that Governor Hobbs has seen fit to strike down this legislation. This bill would have been a huge win for Arizona. It would have allowed the state to invest in a rapidly appreciating asset class and generate more revenue for critical state programs," Weninger said.

"It is time for our leaders to start making bold decisions that will secure the future of our state. We can’t afford to be timid in today’s world. We need to be thinking big and taking action to achieve our goals."

State Senator Wendy Rogers, who had been a vocal supporter of the bill, also expressed her disappointment over the governor’s decision.

"Politicians don't understand that Bitcoin doesn't need Arizona. Arizona needs Bitcoin," Senator Rogers said in a statement.

"They are clueless. It is no secret that Arizona is broke and politicians are desperate for revenue to fund their pet projects. Well, here is a solution: Bitcoin.

"The good news is that Arizona is already investing in Bitcoin through a backdoor. The state retirement system is a major shareholder of MicroStrategy (NASDAQ:MSTR), which is basically a leveraged Bitcoin ETF."

Senator Rogers added that she would be refiling the bill during her next session.

"Which is basically a leveraged Bitcoin ETF. Arizona’s Strategic Bitcoin Reserve bill will be back. HODL," Senator Rogers said.

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