Arizona will not be adding Bitcoin to its portfolio of official state investments, following a veto by Governor Katie Hobbs that blocked a bill aimed at integrating crypto into the state’s financial strategy.
Governor Blocks Digital Reserve Proposal
Late Friday, Hobbs vetoed Senate Bill 1025, dubbed the “Arizona Strategic Bitcoin Reserve Act,” which would have allowed state officials to allocate up to 10% of treasury and pension assets into Bitcoin and other digital currencies.
In her veto message, Hobbs argued that Arizona’s retirement system is strong because it relies on tested investment strategies. “It’s inappropriate to expose the state’s retirement funds to untested investments like digital assets,” she stated.
The bill had been co-sponsored by lawmakers Wendy Rogers and Jeff Weninger and, if passed, would have made Arizona the first U.S. state to hold a formal Bitcoin reserve.
Governor’s Vetoes Pile Up
Crypto advocates weren’t surprised by the move, given Hobbs’ ongoing opposition to legislation amid disputes over disability funding. With this latest rejection, Hobbs has now vetoed 75 bills in 2025, already surpassing her 2024 total. She previously set a record in 2023 by vetoing 143 bills — the most ever by an Arizona governor.
Another digital asset-related proposal, SB1373, which would create a Digital Assets Strategic Reserve Fund, has passed the legislature and awaits Hobbs’ decision. However, her track record suggests it may face the same fate.
Arizona Joins Other States in Rejecting Crypto Investment
Arizona’s veto aligns it with other states where similar proposals have failed, including Montana, Oklahoma, South Dakota, and Wyoming. The move also distances Arizona from efforts to embrace crypto finance more aggressively.
However, North Carolina recently took a step in the opposite direction. On April 30, its House passed the Digital Assets Investment Act, which would allow up to 5% of select funds to be invested in approved digital assets. That bill is currently under review in the state Senate.
Federal Influence and Missed Opportunities
At the federal level, President Donald Trump recently signed an executive order supporting the creation of a national “Strategic Bitcoin Reserve” and “Digital Asset Stockpile,” signaling stronger interest in integrating crypto into U.S. financial infrastructure.
Proponents of Arizona’s failed bill argue the state missed a chance to lead in this emerging sector. For now, however, the official stance is clear: Bitcoin won’t be part of Arizona’s balance sheet.