Arizona Governor Katie Hobbs used her veto against a controversial bill that would have allowed the state to invest in cryptocurrencies and establish the first official reserve of Bitcoin at the state level in the United States. The decision came after Arizona lawmakers approved legislation last week that would allow the state to invest up to 10% of its public funds in digital assets such as Bitcoin.
In an official letter addressed to Senate member Warren Petersen, the President of the State Senate, Governor Katie Hobbs explained her reasons for rejecting the legislation, emphasizing that Arizona’s pension system is among the strongest in the country due to its reliance on well-considered and sound investments. She confirmed that the retirement funds of state residents "are not the right place to experiment with untested investments like virtual currencies," reflecting a cautious stance toward volatile digital assets.
Hobbs's veto came amid criticism from legislators who supported the bill, notably Republican Senator Wendy Rogers, who expressed her disappointment on the platform "X," pointing out that the decision demonstrates a lack of understanding of the nature of cryptocurrencies. Rogers stated that "politicians do not understand that Bitcoin does not need Arizona; rather, Arizona needs Bitcoin," emphasizing that digital assets have gained increasing support among young people and freelancers in the state and beyond.
The rejected bill is viewed as a local attempt to mimic a similar plan launched by former President Donald Trump, who also called for the establishment of a national reserve of Bitcoin, reflecting the growing institutional acceptance of digital currencies.
With the growing role of Bitcoin exchange-traded funds (ETFs) and increased regulatory clarity in the digital assets sector, cryptocurrencies are beginning to take on a more structured character, moving away from their traditional image as speculative instruments. These developments indicate that cryptocurrencies are entering a new phase, nearing their integration into the formal financial system, despite existing political and regulatory obstacles.
