I veto the Bitcoin Law in Arizona, the end of the Bitcoiner dream?
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Hobbs veto reflects caution, prioritizing the stability of the retirement system.
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Trump’s federal impulse on Bitcoin, has inspired to legislate in the states.
The governor of Arizona, Katie Hobbs, vetoed the SB1025 bill, which would have allowed the State to include Bitcoin (BTC) as part of its official reserves. With this, he frustrated efforts to position Arizona as a pioneer in the adoption of the digital currency at the state level.
The decision, announced yesterday, ends the possibility of Arizona becoming the first state of the United States to implement a strategic Bitcoin reserve.
“Today I vetoed the bill 1025 of the Arizona Senate,” Hobbs said in a statement. “The Arizona retirement system is one of the most solids in the country thanks to prudent and informed investments. Arizonenses cannot afford their retirement funds in speculative investments such as cryptocurrencies.”
The SB1025 project, approved by the House of Representatives of Arizona on April 28 with 31 votes in favor and 25 against, authorized the state treasurer and the retirement system to invest up to 10% of public funds in Bitcoin and other digital assets, as Cryptonoticia reported previously.
However, the governor, who had previously warned that he would veto any legislation not linked to a bipartisan agreement on financing for disability assistance, fulfilled his promise, arguing concerns about the volatility of digital assets.
The Hobbs decision reinforces its history as one of the most active governors in the use of veto in Arizona. Since he assumed the position in 2023, he has vetoed more than 200 bills, many of them promoted by the republican majority in the legislature, including proposals on education, weapons and tax policies.
This last veto to the SB1025 bill will intensify the criticisms of Republican legislators, who accuse Hobbs of hindering economic innovation, while their defenders praise their cautious approach to protect public funds.
A second project on hold
A complementary project, SB1373, which proposes the creation of a strategic reserve of cryptoactive in Arizona still does not reach the governor’s desk.
«The parliamentary groups of the Senate met today (on May 1) to consider the amendments of the Chamber. Republicans have recommended concurrence, but the Democrats have not yet decided. Waiting for the Senate Democrats, ”said the Bitcoin Law team, dedicated to the monitoring of these state bills.
The objective of this SB1373 bill, is to grant the state treasure the authority to invest up to 10% of the total amount of the reserve in each fiscal year, as well as the ability to provide digital assets in order to generate additional income.
In any case, Arizona’s decision reflects a broader trend in the US, where efforts to integrate Bitcoin into state finances face obstacles. Similar proposals in Oklahoma, Montana, South Dakota and Wyoming have been suspended or withdrawn in recent months.
In contrast, North Carolina and New Hampshire bills advance. This in line with what happens at the federal level, since President Donald Trump promotes the adoption of Bitcoin. In March he signed an executive order that proposes a strategic Bitcoin reserve. This initiative has inspired Republican legislators in several states, although the resistance of figures such as Hobbs highlights divisions around the integration of cryptoactive in public finances.
