Arizona Governor Katie Hobbs has vetoed a bill that would have allowed the state to establish a Bitcoin reserve. This decision raises concerns about the future of digital asset investments in the state.
Governor Rejects Digital Currency Investment
Governor Katie Hobbs vetoed Arizona Senate Bill 1025 on May 2, 2025. This bill aimed to authorize the state to invest up to 10% of its funds in digital currencies.
Issues Surrounding Cryptocurrency Reserves
The veto halts the creation of cryptocurrency reserves, negatively impacting digital asset markets. Crypto advocates view this as a setback for state adoption efforts.
First Attempt at Bitcoin Reserve Denied
Had this bill passed, Arizona could have become the first state with a Bitcoin reserve. No state has previously invested public funds in digital assets at this scale. As Governor Hobbs stated, "I have concerns about the 'untested' nature of cryptocurrencies, which ultimately guided my decision to veto Senate Bill 1025."
The governor's decision underscores concerns over the volatility and regulatory uncertainty of cryptocurrencies, with officials taking a cautious approach to public fund investments.
