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Arizona Governor Katie Hobbs has vetoed the anticipated Bitcoin reserve legislation, halting the state’s plans for crypto investment.
Arizona is the first U.S. state to pass a strategic Bitcoin reserve legislation. Following the Senate’s approval of investing state retirement funds in Bitcoin reserves on 28th of April, 2025, the bill has been awaiting the governor’s sign. In a turn of events, Arizona Governor Katie Hobbs has put a roadblock on the bill, citing that Bitcoin is a “virtual currency”.
According to the official letter, Katie Hobbs responded;
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. Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency
Following this veto, crypto enthusiasts and Bitcoin maximalists have expressed mixed feelings. Some crypto analysts are surprisingly trying to estimate the projected losses that await Arizona state in the coming years, if Bitcoin reserves face complete rejection.
As legislators remain resilient in their decisions, the market anticipates positive approaches in the coming months while monitoring committee stages in other states.
[…] This Law makes New Hampshire the first U.S. state to allow its treasury to invest up to 5% of its reserves in Bitcoin, the “digital gold,” and other precious metals. Arizona has been leading the strategic reserve race, but lags following Governor Hobbs’ veto. […]