Catenaa, Monday, May 05, 2025-Arizona Governor Katie Hobbs has vetoed a Republican-backed bill that would have allowed state funds to invest up to 10% in digital assets like bitcoin, calling the move too risky for public retirement accounts.
The legislation, passed April 26 by Arizona’s GOP-led legislature, proposed permitting the state’s treasurer and retirement systems to allocate a portion of their portfolios to virtual currencies. Hobbs, a Democrat, swiftly rejected the measure, citing the unproven nature of cryptocurrencies.
“The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments,” Hobbs wrote in her veto letter. “Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency.”
The bill’s sponsors included two Republican lawmakers who had championed the measure as a forward-thinking strategy amid growing national interest in digital assets. However, Hobbs had previously pledged to halt new legislation until lawmakers agree on a bipartisan budget plan that ensures health care protections for people with disabilities.
The veto drew backlash from bitcoin advocates online. David Bailey, CEO of Bitcoin Magazine, posted on X, “Impeach Katie Hobbs, she just screwed over Arizona.”
Similar legislation is under consideration in states like Iowa, Missouri, and Texas, though no state has yet passed a bitcoin reserve law.
Hobbs’ veto adds to the growing debate over public sector exposure to crypto, even as institutional interest in digital assets continues to rise.
