Arizona vetoes bill to invest 100 million dollars in Bitcoin reserves

Arizona Governor Katie Hobbs vetoed a bill that would have allowed the state to hold Bitcoin (CRYPTO:BTC) as part of its official reserves, halting efforts to make Arizona the first US state to adopt such a policy.

The Digital Assets Strategic Reserve bill proposed investing seized funds into Bitcoin and creating a reserve managed by state officials.

“The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments,” Hobbs explained in a statement directed at Senate President Warren Petersen.

“Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency,” she added.

The bill had passed the Arizona House on April 28, with 31 votes in favor and 25 against.

However, Hobbs had previously indicated she would veto legislation not linked to a bipartisan agreement on disability funding.

A companion bill, SB1373, which would allow the state treasurer to allocate up to 10% of Arizona’s rainy-day fund into digital assets including Bitcoin, has yet to receive a final vote.

Arizona’s veto follows similar setbacks in other states such as Oklahoma, Montana, South Dakota, and Wyoming, where comparable proposals have stalled or been withdrawn.

In contrast, North Carolina’s House recently passed the Digital Assets Investment Act, permitting the state treasurer to invest up to 5% of certain funds in approved cryptocurrencies; this bill now awaits Senate consideration.

These state-level initiatives coincide with federal discussions, including a proposal by former President Donald Trump to create a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile,” outlined in an executive order signed in March.

At the time of reporting, the Bitcoin (BTC) price was $94,736.60.