Michaela
Arizona Governor Katie Hobbs has faced criticism from community members and U.S. government officials after vetoing a bill that would have allowed the state to establish a Bitcoin reserve.
In a statement issued on May 2, Hobbs formally announced her decision to veto Senate Bill 1025. “The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments. Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currencу,” Hobbs wrote.
The proposed legislation, also known as the Arizona Strategic Bitcoin Reserve Act, aimed to allocate seized funds toward purchasing Bitcoin, establishing a state-managed digital asset reserve. After narrowly passing the state House in a 31-25 vote, the bill was sent to Governor Hobbs for final approval.
Governor Hobbs’ veto sparked backlash across social media, where critics voiced frustration and warned that the decision could impact her chances for re-election. Some users also suggested she may come to regret rejecting the proposed legislation.
Arizona Senator Wendy Rogers, a co-sponsor of the bill, expressed her disappointment with Governor Hobbs’ veto in a post shared on X. “I understand the governor vetoed my Arizona Bitcoin Reserve Bill. That is unfortunate. Politicians don’t understand that Bitcoin doesn’t need Arizona. Arizona needs Bitcoin,” Rogers wrote.
Additionally, Rogers stated that she intends to reintroduce the bill during the legislature’s next session. “If she vetoes it again, I am sure Governor Andy Biggs will be happy to take credit for signing the bill for this already proven (16 years!) innovation that will protect our wealth,” Rogers added.
However, not everyone opposed Governor Hobbs’ decision. American economist Peter Schiff expressed support for the veto, backing her move to reject the proposed legislation.
“The government should not be making decisions to use public funds to speculate in [cryptocurrencies],” Schiff wrote in an X post.
Had it been signed into law, Arizona would have been the first U.S. state to formally establish a Bitcoin Strategic Reserve. Instead, the state now joins a growing list of others—such as Oklahoma, Montana, South Dakota, and Wyoming—where recent attempts to integrate Bitcoin into government holdings have either been withdrawn, vetoed, or failed to gain enough legislative support.
This reflects the ongoing divergence in state-level approaches to digital assets, even as national conversations surrounding cryptocurrency regulation continue to evolve.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
