Arizona rejects idea of creating reserves in bitcoin
Date: 2025-05-05 Author: Gabriel Deangelo Categories: IN WORLD
Arizona Governor Katie Hobbs vetoed a bill that proposed investing up to 10% of state funds in cryptocurrencies, including bitcoin. According to her, such assets are too risky for public finances and do not correspond to the strategy of responsible management.
Hobbs said that Arizona's pension system is deservedly considered one of the most sustainable in the country due to its conservative approach to investments. In her opinion, the inclusion of digital assets in the structure of pension investments could undermine confidence in the system and put the savings of state residents at risk.
Bill 1025 was approved by the lower house of the Arizona Legislative Assembly by a narrow margin of votes - 31 to 25. It provided for the use of confiscated assets to form a state reserve of cryptocurrencies, primarily bitcoin. The initiative was sponsored by Republican legislators Wendy Rogers and Jeff Weninger.
The governor’s decision sparked outrage among cryptocurrency advocates. Bitcoin Magazine CEO David Bailey took to social media to slam the veto, saying Hobbs had “betrayed Arizona” and calling for her impeachment.
If the law had gone into effect, Arizona would have been the first U.S. state to formally incorporate Bitcoin into its financial structure. However, that chance has now passed, and the initiative, like other states, has failed.
Similar proposals have previously been considered in Oklahoma, Montana, Pennsylvania, both Dakotas, and Wyoming, but none have succeeded in creating a strategic digital asset reserve.
Meanwhile, at the federal level, President Donald Trump signed an executive order in March to create a national reserve based on cryptocurrencies seized from criminals. The move could impact future regulation and adoption of digital assets in the U.S., but for now, individual states including Arizona remain cautious.
