Arizona governor denies Bitcoin inclusion in state reserves
Arizona governor vetoes bill to hold Bitcoin in state reserves.
Arizona Governor Katie Hobbs has vetoed Senate Bill 1025, which would have allowed the state to hold Bitcoin as part of its official reserves.
The legislation aimed to establish a state-managed digital assets reserve using seized funds, positioning Arizona to become the first U.S. state to formally integrate Bitcoin into its investment strategy, reports Cryptopolitan.
In a letter addressed to Arizona Senate President Warren Petersen, Hobbs defended the veto, saying, “The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments… not the place for the state to try untested investments like virtual currency.”
Partisan divide derails digital asset ambitions
The bill passed the state House narrowly on April 28, with 31 lawmakers voting in favor and 25 opposing. However, Hobbs had previously warned that she would not support legislation unrelated to bipartisan disability funding agreements, making the bill’s fate all but certain.
A related proposal, SB1373, which would allow Arizona’s treasurer to invest up to 10% of the state’s rainy-day fund in digital assets, still awaits a final vote.
Other states weigh similar strategies
Arizona’s move comes amid a broader national debate over digital asset integration at the state level. Similar bills have failed in Oklahoma, South Dakota, Wyoming, and Montana. Meanwhile, North Carolina’s House passed a bill on April 30 that would permit its treasurer to invest up to 5% of select funds in cryptocurrencies. The measure is now under Senate review.
These state-level initiatives echo recent federal efforts by the Trump administration, which in March proposed the creation of a “Strategic Bitcoin Reserve” and a national digital asset stockpile, underscoring the political divide over crypto’s role in public finance.
Recently we wrote that Bitcoin’s price action is taking a breather near $96,800 on Friday, May 2, following a decisive technical breakout earlier this week that surged past resistance at $95,850, thus ending a six-day consolidation.
