"Investment in Bitcoin remains unproven" – Arizona Governor Nixes BTC Legalization Bill
Title: Arizona's Bid to Establish Bitcoin Reserve Falls Short After Katie Hobbs' Veto
Hey there, folks! Let's delve into the latest happenings in the crypto landscape, specifically Arizona's ambitious attempt to create a Strategic Bitcoin Reserve.
Last week, Arizona Governor Katie Hobbs nixed Senate Bill 1025, effectively dashing Arizona's hopes of becoming the first state in the U.S to launch such a venture. The bill, which passed the Arizona House with a 31-25 vote on April 28, intended to invest seized funds in Bitcoin and establish a Digital Assets Strategic Reserve Fund under state management.
The reasoning for Hobbs' decision stems from her concerns about Bitcoin's unpredictable nature, deeming it an "untested investment" unsuitable for the Arizona State Retirement System. Her skepticism echoes her earlier pledge to thwart bills unrelated to a bipartisan disability funding agreement, resolved on April 24.
The news has stirred a fury among crypto enthusiasts, who thought that holding Bitcoin could shield Arizona from escalating prices and establish the state as a trailblaser in groundbreaking financial ideas. Some have even ventured to challenge Hobbs' decision with legislature to overturn it.
In a twist of events, another bill, SB 1373, is still on the table, proposing an allocation of up to 10% of Arizona's rainy-day fund to digital assets.
interestingly, other states like Oklahoma, Montana, South Dakota, and Wyoming have also struck out in their attempts to pass similar Bitcoin investment plans. However, North Carolina seems to be forging ahead. It's slated to pass a law on April 30, 2025, that would allow the state to invest up to 5% of some funds in cryptocurrencies. The Senate of North Carolina is currently deliberating on that law.
It's worth noting that back in March 2025, former President Donald Trump green-lit the creation of a national Strategic Bitcoin Reserve and a Digital Asset Stockpile, showcasing federal-level support for Bitcoins and other digital currencies.
Data reveals that as of late April/early May 2025, Arizona has emerged as the frontrunner in state-level efforts to establish Bitcoin reserves, befitting Arizona's pioneering spirit. Although North Carolina has yet to make its presence known in these efforts, based on the available data.
Stay tuned for more updates on this engaging saga!
- Despite Arizona's bid to establish a Bitcoin reserve, Senator Katie Hobbs' veto of Senate Bill 1025 has halted the plan, raising concerns among crypto enthusiasts.
- The rejection of the bill was due to Hobbs' concerns about Bitcoin's unpredictable nature, viewing it as an untested investment unsuitable for the Arizona State Retirement System.
- In response to Hobbs' veto, there have been efforts to challenge her decision with legislature to overturn it and continue Arizona's aim for a digital asset reserve fund.
- Interestingly, another bill, SB 1373, has been proposed to allocate up to 10% of Arizona's rainy-day fund to digital assets, keeping the state's Bitcoin venture alive.
- Despite setbacks in Arizona and other states like Oklahoma, Montana, South Dakota, and Wyoming, North Carolina is forging ahead with plans to pass a law in 2025, allowing the state to invest up to 5% of some funds in cryptocurrencies.
