In a bold but controversial move, Arizona Governor Katie Hobbs vetoed the proposed “Arizona Strategic Bitcoin Reserve Act” on May 2, 2025. The bill—Senate Bill 1025—sought to allow the state to allocate up to 10% of public funds, including seized assets, into Bitcoin and other digital assets. The proposal had support from pro-crypto legislators like State Senator Wendy Rogers, but Hobbs wasn’t convinced.
“Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency,” Hobbs wrote in her veto letter.
Her primary concern? The unpredictable and unregulated nature of digital assets. While the crypto market has matured in recent years, Hobbs believes it’s still too early to entrust taxpayer money to such volatile assets.
Crypto Advocates Push Back
The veto has stirred sharp criticism from the Bitcoin community and lawmakers backing the bill. Senator Wendy Rogers responded on X (formerly Twitter), stating:
“Politicians don’t understand that Bitcoin doesn’t need Arizona. Arizona needs Bitcoin.”
Rogers and other supporters argue that Bitcoin’s deflationary nature and independence from central banks make it a smart hedge—especially for long-term reserves like pension and rainy-day funds.
Arizona Joins Other States in Saying “No” to Bitcoin Reserves
Arizona isn’t alone in its caution. Similar proposals have failed in Oklahoma, South Dakota, Montana, and even Wyoming—a state often considered crypto-friendly. All faced political pushback and concerns over regulatory uncertainty and fiduciary responsibility.
But Arizona’s crypto journey might not be over just yet.
What’s Next? Another Crypto Bill Still in Play
A separate bill—Senate Bill 1373—aims to allow the Arizona State Treasurer to invest 10% of the state’s rainy-day fund into digital assets. While this legislation has yet to reach a final vote, it could reintroduce the crypto conversation to Arizona’s legislative floor soon.
Final Thoughts
The veto by Governor Hobbs underscores the ongoing tension between innovation and institutional risk. While crypto advocates see digital assets as the future of finance, state leaders remain wary of exposing public funds to market volatility.
For now, Arizona is pumping the brakes—but we, the crypto community, aren’t slowing down.
