Arizona will not be using public funds to invest in Bitcoin and other cryptocurrencies — at least not during the tenure of Governor Katie Hobbs (D).
Arizona has now lost ground in what’s been a race among U.S. states to see which may become the first to establish a crypto reserve as a formal part of their fiscal strategy.
Arizona Governor Nixes Bitcoin Reserve Bill
The Arizona Strategic Bitcoin Reserve Act, which would have allowed the state to invest up to 10% of public money in digital assets like Bitcoin, was formally rejected on Friday.
“Today, I vetoed Senate Bill 1025. The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments,” Hobbs said in an official statement to Warren Petersen, the President of the Arizona Senate.
Had the legislation become law, Arizona would have been the first state in the United States to require public funds to invest in Bitcoin, even outpacing the Treasury Department’s push to get it done, which is still faiting for a full accounting of the nation’s stash before federal officials can move to create the reserve that President Donald Trump has called for.
In her veto message, Hobbs explained that Arizona’s retirement system is robust because it sticks to proven investment products. She believes it’s unacceptable to expose the state’s retirement funds to untested investments like digital currencies.
While the veto marks a setback for crypto proponents, it’s not unexpected given the governor recent took a recent stand to veto any legislation until a separate funding matter on constituents with disabilities was resolved.
Notably, Arizona joins other US states where similar initiatives have failed to advance, including Oklahoma, Montana, South Dakota, and Wyoming. Conversely, North Carolina’s House passed the Digital Assets Investment Act on April 30, authorizing the state treasurer to invest up to 5% of certain funds in approved cryptocurrencies. The legislation was moved to the state Senate for further debate.
