Hobbs Vetoes Arizona Bitcoin Reserve Bill
Arizona Governor Rejects Bitcoin Reserve Bill
Arizona will not be adding Bitcoin to its state reserves, at least not under Governor Katie Hobbs. Hobbs vetoed Senate Bill 1025, the "Arizona Strategic Bitcoin Reserve Act," which would have allowed the state to invest up to 10% of its treasury and pension assets in digital assets like Bitcoin.
Key Takeaways:
- Governor Hobbs vetoed SB1025, blocking Bitcoin investment in state reserves.
- A related bill, SB1373, focusing on a Digital Assets Strategic Reserve Fund, awaits the Governor's decision.
The bill, co-sponsored by Wendy Rogers and Jeff Weninger, aimed to make Arizona the first state to adopt such a policy. However, Governor Hobbs stated in her veto message that the state's strong retirement system relies on proven investment strategies. She argued that exposing retirement funds to the volatility of digital assets is inappropriate.
While this decision is a setback for crypto advocates, it's not entirely surprising, given the governor's earlier stance on legislation and her history of vetoes. In 2025 alone, she's vetoed 75 bills, exceeding the 73 vetoed in 2024. Her record stands at 143 vetoes in 2023—the most by any Arizona governor.
Although Arizona lawmakers approved both SB1025 and SB1373, the latter’s fate remains uncertain given Hobbs’ track record. This mirrors similar failed initiatives in Oklahoma, Montana, South Dakota, and Wyoming.
Conversely, North Carolina's House recently passed the Digital Assets Investment Act, allowing a 5% investment in approved digital assets. This bill now awaits Senate consideration. These state-level movements reflect broader federal interest, as evidenced by President Trump's March executive order suggesting a "Strategic Bitcoin Reserve" and "Digital Asset Stockpile."
Proponents argue that Arizona is missing an opportunity to be a leader in the burgeoning financial technology sector. For now, however, Bitcoin will remain absent from the state's official investments.
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