Arizona Governor Labels Crypto an ‘Unproven Investment,’ Vetoes Bitcoin Reserve Legislation

Arizona won’t be making any moves to invest in bitcoin (BTC) this year.

Governor Katie Hobbs recently vetoed legislation that sought to permit the state to acquire the cryptocurrency as part of its reserve holdings.

The bill, designated as Senate Bill 1025, aimed to allocate confiscated assets for bitcoin investment and establish a state-managed digital asset reserve. Despite narrowly passing the state House with a 31–25 vote, it was quickly rejected by Hobbs.

In her statement, Hobbs emphasized, “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 currency.”

The veto puts an end to efforts that could have positioned Arizona as the first state to implement a cryptocurrency reserve, potentially leading ahead of the U.S. Treasury Department in the process.