Arizona’s Bitcoin Dream Derailed: Governor Hobbs Vetoes State Reserve Plan

Arizona’s bold bid to become a crypto-forward state just hit a wall—Governor Katie Hobbs axed the proposed Bitcoin treasury reserve, leaving proponents scrambling and skeptics shrugging. The move throws cold water on efforts to diversify state assets beyond ’old economy’ bonds and bullion.

Key details: The bill would have allowed Arizona to hold BTC as part of its reserve portfolio, mirroring strategies by crypto-friendly nations like El Salvador. Critics called it a reckless gamble; supporters framed it as hedging against dollar debasement. Either way, the veto protects taxpayers from volatility—or denies them upside, depending on who’s shouting.

Behind the scenes: Lobbyists whisper about pressure from traditional finance players. One banking exec reportedly joked ’at least they didn’t allocate to meme coins’ during champagne toasts. The fight’s not over—crypto PACs are already mobilizing for 2026.

Bottom line: Another US state blinks at Bitcoin adoption. Meanwhile, the Treasury keeps printing, ETFs keep buying, and Arizona’s reserves stay predictably... mediocre.

In Brief

• The governor of Arizona vetoes a bill allowing bitcoin to be integrated into its reserves.
• A second similar bill is still pending, while other states like North Carolina are moving forward.
• The debate on institutional adoption of bitcoin intensifies at both state and federal levels.

Arizona Refuses to Integrate Bitcoin into Its Reserves

A setback for bitcoin in the state of Arizona. Democratic Governor Katie Hobbs vetoed on Friday the Digital Assets Strategic Reserve bill (SB1025), which would have allowed the state to invest part of its seized funds in BTC. Arizona could thus have become the first U.S. state to integrate cryptocurrency into its official reserves.

The bill, passed in April by the State House of Representatives (31 votes for, 25 against), proposed the creation of a strategic bitcoin fund managed by public officials. But Hobbs categorically rejected this approach. “Arizona’s retirement system is one of the strongest in the country because it is based on prudent and informed investments. The retirement funds of Arizonans are not a testing ground for unproven virtual assets,” she said in a message addressed to the local Senate president.

Other Initiatives Pending

A second bill, SB1373, which would allow allocating up to 10% of the state’s emergency reserve fund to digital assets like bitcoin, is still awaiting final vote. Arizona thus joins other states like Montana, South Dakota, and Oklahoma, where similar initiatives have failed. But momentum continues elsewhere.

North Carolina, meanwhile, has taken a step forward with the adoption by its House of the Digital Assets Investment Act, allowing investment of 5% of certain funds into cryptocurrencies. The bill is now in the hands of the local Senate. At the federal level, the Trump administration is also pushing for the creation of a “strategic bitcoin reserve” through an executive order signed in March.

The battle for institutional bitcoin is far from over. While Arizona hesitates, other states like California are heavily investing in Strategy’s BTC shares. Between political caution and strategic vision, bitcoin is gradually asserting itself in American budget debates. State adoption is no longer a question of “if“, but of “when“.

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