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Arizona Governor Katie Hobbs rejected a new bill that would allow the state to hold Bitcoin as part of its reserved funds. This decision temporarily ended a plan that could have made Arizona the first U.S. state to keep Bitcoin in its financial reserves. The governor noted that Bitcoin is an “untested” and “unsound” investment. Public funds should not be used for such risks, according to him. Implications of the Bitcoin Bill Veto The Digital Assets Strategic Reserve Bill, would have allowed the state to invest seized funds in Bitcoin. It also proposed creating a Bitcoin crypto reserve managed by government officials. The bill initially passed a final vote in the state House, with 31 votes in favor and 25 against. However, Governor Hobbs chose to veto it on Friday, May 2. In her official statement, she emphasized that Arizona’s retirement system is one of the strongest in the country due to its “sound and informed” investment strategies. Image Source: Arizona Governor’s Office She believes a Bitcoin reserve does not meet that standard. By rejecting the bill, Governor Hobbs clarified that the state is not yet ready to risk public funds on crypto assets. If the bill had been signed into law, Arizona would have been the first state in the U.S. to create an official Bitcoin crypto reserve. Supporters argued that digital assets could help future-proof the state’s finances, especially during economic uncertainty. Critics warned that the Bitcoin price is too volatile, making it too risky for public funds. Many fear that the veto move could also pause momentum on a related proposed bill called SB1373. This bill would allow the state to invest up to 10% of Arizona’s rainy-day fund in Bitcoin and other digital assets. Although the bill has not yet reached a final vote, many think…

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Filed under: News - @ May 4, 2025 11:24 am