Arizona Governor Vetoes Bill on Bitcoin Investment for Public Funds

Arizona’s 10% Bitcoin Investment Bill Stopped

The bill, known as the “Arizona Strategic Bitcoin Reserve Act,” aimed to invest up to 10% of public funds in digital currencies. Governor Hobbs opposed exposing retirement funds to untested investments. This veto is part of her extensive use of veto power in recent years.

The legislation, co-sponsored by State Senators Wendy Rogers and Jeff Weninger, sought to position Arizona as the first state with an official Bitcoin reserve. Nevertheless, the governor felt the risks outweighed potential benefits, citing fiscal prudence concerns.

“Today, I vetoed Senate Bill 1025. The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments. It’s inappropriate to expose the state’s retirement funds to untested investments like digital currencies.” — Governor Katie Hobbs, Governor of Arizona source

Public Reaction to Bill’s Rejection

The vetoed bill would have allowed 10% of treasury and pension assets into digital currencies. Advocates view the decision as a missed opportunity for institutional growth, while critics assert it avoids fiscal uncertainty.

The decision underscores financial caution amidst volatile crypto markets. Politically, it represents Hobbs’ firm stance against risky investments and ongoing blockchain policy challenges, highlighting a broader national debate on digital currency adoption.

State-Level Attempts and Future Implications

Arizona’s move follows similar failed attempts in Oklahoma, Montana, and other states. Contrastingly, North Carolina progresses with its Digital Assets Investment Act, reflecting varied state-level receptions.

Experts suggest Arizona’s decision may delay state adoption but legislative momentum elsewhere continues. The veto could influence future considerations, shaping how state governments engage with digital investments.