Arizona Governor Vetoes Bitcoin Reserve Legislation
Arizona Governor Katie Hobbs has come under fire from the crypto community after she vetoed Senate Bill 1025 on May 2. The bill, known as the Arizona Strategic Bitcoin Reserve Act, would have allowed the state to invest confiscated funds in Bitcoin and establish a reserve run by state officials.
Governor Hobbs justified the action by invoking the health of Arizona’s retirement system, which she claimed is based on “sound and informed investments.” In her veto message, she explicitly stated that, in her view, Bitcoin does not qualify as such prudent financial management.
Outrage from Bitcoin Supporters
The veto was quickly condemned by prominent Bitcoin advocates and politicians. State Senator Wendy Rogers, who sponsored the legislation alongside Representative Jeff Weninger, took issue with Hobbs’ move.
“Politicians are mistaken that Bitcoin is not needed in Arizona. Arizona is needed for Bitcoin,” Rogers posted on X, reaffirming her faith in Bitcoin’s capacity to enrich the state’s economy.
Casa co-founder and long-time cypherpunk Jameson Lopp condemned the move, labeling it “This will age poorly.” Bitcoin investor and entrepreneur Anthony Pompliano also had something to say, commenting, “Imagine the ignorance of a politician to think that they can make investment choices,” and noting that if Hobbs can’t defeat Bitcoin, she should just purchase it.
Crypto attorney Andrew Gordon also weighed in, calling for “more elected leaders who understand that Bitcoin and crypto are the future.”
Rogers Vows to Re-File Bill
Despite the veto, Rogers vowed to re-file the bill in the next legislative session. She also called out hypocrisy in the investment strategy of Arizona, calling attention to the fact that the state pension fund is already invested in shares of MicroStrategy (MSTR), a company heavily invested in Bitcoin.
“Which is basically a leveraged Bitcoin ETF,” she stated. “Arizona’s Strategic Bitcoin Reserve bill will be back. HODL.”
MicroStrategy stock increased 32% in April, the company’s biggest monthly increase since November 2024.
Mixed Political Reactions
The cryptocurrency community widely panned Hobbs’ action, but was endorsed by veteran Bitcoin critic Peter Schiff. Schiff praised the veto, arguing that governments should not use public funds to “speculate in cryptocurrencies.”
The failure highlights an ongoing debate over whether state governments should embrace digital assets as part of their fiscal planning.
Broader Trend Across the U.S.
Arizona’s failed bill is part of a broader trend of U.S. states debating — and tabling — crypto-related legislation. Similar proposals in Oklahoma, Montana, South Dakota, and Wyoming have recently failed or been withdrawn.
If SB 1025 had passed into law, Arizona would have been the first state to create an official Bitcoin reserve. Instead, the state joins the growing list of jurisdictions not ready to move toward crypto finance.
