In the US, Arizona chose not to add Bitcoin to its official state investments after Governor Katie Hobbs, a Democrat, blocked the plan. Hobbs turned down Senate Bill 1025 on Friday.
This bill was called the “Arizona Strategic Bitcoin Reserve Act,” and it wanted to let the state spend up to 10% of its pension and treasury funds in Bitcoin and other digital assets. Arizona would have been the first state in the U.S. to have such a law if it had been passed.
In her veto message, Hobbs talked about how strong Arizona’s retirement system is and said that it works because people stick to traditional investment methods. She was worried about putting state retirement funds at risk with investments that haven’t been tried yet, like digital assets. This choice is in line with what she said before, when she said she was ready to block all legislation until problems with disability funding were fixed.
Hobbs’ veto is part of a larger trend. She has now turned down 75 bills this year, which is more than her previous high of 73 vetoes in 2024. She set an Arizona record in 2023 by vetoing 143 bills, more than any other governor in the state’s history. Along with SB1025 and SB1373, lawmakers also passed SB1373, which calls for the creation of a Digital Assets Strategic Reserve Fund. However, given Hobbs’ past track record, this bill may also fail.
Arizona’s choice is part of a larger trend in state legislatures across the country. Similar efforts have failed in Oklahoma, Montana, South Dakota, and Wyoming. North Carolina has recently made progress in this area, though. The House passed the Digital Assets Investment Act, which lets the state treasurer spend up to 5 percent of certain funds in approved digital assets. The Senate is now considering this bill.
