Main to remember
- The governor of Arizona, Katie Hobbs, vetoed a bill that would allow Bitcoin in state reserves.
- A related bill, SB1373, could still allow limited investments in digital assets in Arizona.
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Arizona will not add Bitcoin to its list of official state investments – at least not under the Democratic Governor Katie Hobbs.
In a veto issued on Friday evening, Hobbs rejected Bill 1025 of the Senate, also known as SB1025 or “Arizona Strategic Bitcoin Reserve”, proposed legislation that would have enabled the State to invest in Bitcoin and other digital assets.
The bill, co -packed by Wendy Rogers and Jeff Weninger, would have enabled State officials to invest up to 10% of the state treasure and retirement assets in digital assets like Bitcoin. If it had become law, Arizona would have been the first state of the country to adopt such a policy.
In his veto message, Hobbs said that the Arizonans’ retirement system is strong because it sticks to proven investment strategies. She thinks that it is inappropriate to exhibit state retirement funds to not tested investments such as digital assets.
Although the veto is a setback for the defenders of the crypto, it is hardly unexpected given the governor’s previous threat to block all the laws on the funding not resolved by the handicap.
Friday, Hobbs also published a series of other refusals. She now opposed her veto to 75 invoices in 2025, exceeding 73 Vetos she delivered in 2024. Her file remains the 143 invoices she blocked in 2023, the most by any governor in the history of Arizona.
Arizona legislators approved two bills on Monday, SB1025 and SB1373, the latter offering the creation of a strategic digital asset reserve fund, which is now awaiting the governor’s decision. However, the history of Hobbs suggest that the bill can be directed to the same fate as the previous measures.
Arizona joins other states where comparable initiatives have failed to progress, including Oklahoma, Montana, South Dakota and Wyoming.
However, the Northern Carolina Chamber recently adopted the law on digital asset investments on April 30, allowing its state treasurer to invest up to 5% of certain funds in approved digital assets. The bill is now under the study of the Senate.
Initiatives at the level of the state align with federal efforts, while President Donald Trump signed a decree in March by proposing a “strategic bitcoin reserve” and “storage of digital assets”.
Supporters of the digital reserve plan argue that Arizona lacks a chance to lead in the rapid financial sector. But for the moment, the official position of the state is clear: Bitcoin will not be part of its assessment.
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