Arizona’s Bitcoin Reserve Dream Crashes as Governor Wields Veto Pen

Another swing—another miss for crypto in state legislatures. Arizona’s bold play to hoard Bitcoin as treasury reserve got axed at the finish line, proving even gold-plated blockchain dreams aren’t veto-proof.

Governor’s office cites ’regulatory uncertainty’—translation: Wall Street lobbyists earned their retainers this quarter. Meanwhile, Bitcoiners shrug and keep stacking sats, because since when has government approval ever been crypto’s growth catalyst?

Arizona’s Bitcoin Reserve Bill Vetoed Despite Bipartisan Support

In a letter to Senate President Warren Petersen, Hobbs emphasized that the Arizona State Retirement System (ASRS) must continue to prioritize stable, well-vetted investments.

She described virtual currencies as “untested” and unsuitable for the retirement savings of Arizona residents.

“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 currencу,” the governor stated.

Governor Hobbs’ stance reflects the broader skepticism within the Democratic Party toward crypto integration in state financial systems.

It also follows shortly after Arizona’s legislature made history as the first in the US to pass an SBR bill in both chambers—garnering bipartisan support.

Meanwhile, Senate Bill 1025 was one of two digital asset-related proposals forwarded to Hobbs’ desk this session.

The second, Senate Bill 1373, would give Arizona the authority to retain cryptocurrencies obtained through legal seizures. It would also empower the state treasurer to lend these assets to generate additional income.

The status of this bill remains unclear in the wake of Hobbs’ opposition to SB 1025.

Arizona now joins a group of states—including Oklahoma, Montana, North Dakota, and Wyoming—where efforts to formalize Bitcoin reserves have stalled or failed.

Nonetheless, momentum continues elsewhere. New Hampshire is nearing a potential breakthrough, with its SBR proposal advancing past committee review and now awaiting a full vote in the second legislative chamber. If approved, it will proceed to the governor for final consideration.

At the national level, Senator Cynthia Lummis has welcomed recent support from President Donald Trump for her plan to establish a federal Bitcoin reserve.

“The BITCOIN Act is the only solution to our nation’s $36T debt. I’m grateful for a forward-thinking president who not only recognizes this, but acts on it,” Lummis stated.

Lummis is pushing the BITCOIN Act bill, which will allow the US to acquire up to 1 million BTC over five years. The lawmaker claims such a move would help stabilize US fiscal policy and enhance the nation’s role in global financial innovation.