Key dealers
- Arizona Governor Katie Hobbs vetoed a bill that would allow Bitcoin in state reserves.
- A related bill, SB1373, can still enable limited investments in digital assets in Arizona.
Arizona will not add Bitcoin to his list of official government investments – at least not under the democratic governor Katie Hobbs.
On one veto Issued late Friday rejected Hobbs Senate Bill 1025, also known as SB1025 or “Arizona Strategic Bitcoin Reserve Act”, proposed legislation that would have enabled the state to invest in bitcoin and other digital assets.
The bill, which is sponsored by Wendy Rogers and Jeff Weninger, would have allowed government officials to invest up to 10% of the Treasury and pension assets in digital assets such as Bitcoin. Had it become law, Arizona would have been the first state in the country to adopt such a policy.
In its veto message, Hobbs stated that Arizonan’s pension system is strong because it adheres to proven investment strategies. She believes that it is inappropriate to reveal the state’s pension funds for untested investments as digital assets.
While Veto is a setback for crypto advocates, it is hardly unexpected in view of the governor’s previous threat to block all legislation on unsolved disability funding.
On Friday, Hobbs also issued a number of other rejections. She has now vetoed 75 bills in 2025 and exceeded the 73 veins she issued throughout 2024. Her record remains the 143 bills she blocked in 2023, most of any governor of the Arizona history.
Arizona legislators on Monday approved two billsSB1025 and SB1373, the latter propose the creation of a strategic reserve fund for digital assets, which are now waiting for the governor’s decision. However, Hobbs’ Track Record suggests that the bill may be on the way to the same fate as previous measures.
Arizona joins other states where comparable initiatives have failed to proceed, including Oklahoma, Montana, South Dakota and Wyoming.
However, North Carolina’s House recently adopted the Investment Act for digital assets on April 30, which enabled its state treasurer to invest up to 5% of certain funds in approved digital assets. The bill is now under the consideration of the Senate.
The state level initiatives are in line with federal efforts, as President Donald Trump signed an executive order in March and proposed a “strategic bitcoin reserve” and a “digital asset storage.”
Supporters of the digital backup plan claim that Arizona lacks a chance to lead in the rapidly concerning the financial sector. But at the moment the state’s official attitude is clear: Bitcoin will not be included in the balance sheet.