tl;dr
Arizona Governor Katie Hobbs vetoed Senate Bill 1025, the "Arizona Strategic Bitcoin Reserve Act," which would have allowed state treasurers and retirement systems to invest up to 10% of state funds in Bitcoin and other cryptocurrencies. Hobbs cited the strength of the Arizona State Retirement Syste...
Arizona Governor Katie Hobbs vetoed Senate Bill 1025, known as the "Arizona Strategic Bitcoin Reserve Act," which would have allowed state treasurers and retirement systems to invest up to 10% of state funds into Bitcoin and other cryptocurrencies. Hobbs emphasized the strength of the Arizona State Retirement System, attributing it to "sound and informed investments," and expressed concern that retirement funds are not the right place to experiment with untested assets like crypto.
This veto marks Arizona as the sixth state to reject a proposal enabling public fund investment in Bitcoin, while 19 other states continue to consider similar legislation. The bill aimed to establish a framework for state investment in digital assets and contemplated storage in a potential federal "Strategic Bitcoin Reserve."
Alongside SB1025, a related bill, SB1373, titled the "Digital Assets Strategic Reserve Fund," remains under consideration. Unlike SB1025, SB1373 does not authorize new investments but sets protocols for managing digital assets acquired through appropriations or seizures, such as from criminal proceedings, and exempts these funds from standard fiscal year lapse rules. Governor Hobbs' forthcoming decision on SB1373 may determine the future direction of Arizona’s digital asset policies.
The veto reflects Hobbs’ cautious stance on crypto-related public finance legislation amid rising national interest in digital currencies. This move aligns with her earlier signals to veto GOP-led bills not linked to budget negotiations. The bill had passed both legislative chambers without amendments before being halted by Hobbs.
Arizona’s decision underscores the ongoing debate surrounding the use of public and retirement funds in cryptocurrencies, highlighting the tension between innovative investment strategies and the imperative to safeguard public assets.