Arizona Governor Katie Hobbs vetoed Senate Bill 1025 on Friday, ending the state’s bid to become the first in the U.S. to establish a Strategic Bitcoin Reserve. The bill, passed by the Arizona House on April 28 with a 31-25 vote, would have allowed the state to invest seized funds in Bitcoin valued at $96,314 per BTC and create a Digital Assets Strategic Reserve Fund managed by state officials.
A companion bill, SB 1373, awaits a final vote and proposes allocating up to 10% of Arizona’s rainy-day fund to digital assets. Governor Hobbs, a Democrat, cited Bitcoin’s risks, calling it an “untested investment” unsuitable for Arizona’s robust State Retirement System.
“Arizonans’ retirement funds are not the place for virtual currency,” she stated in a letter to Senate President Warren Petersen. Her veto aligns with her earlier pledge to block bills unrelated to a bipartisan disability funding agreement, resolved on April 24.
As per the reports, the initiative has not received enough votes, which has led to legislation to overturn her decision. The news has upset crypto supporters, as they believed holding Bitcoin could protect against rising prices and make Arizona a leader in new financial ideas.
Other states like Oklahoma, Montana, South Dakota, and Wyoming have also failed to pass similar Bitcoin investment plans. However, North Carolina is moving forward with a law passed on April 30, 2025, that lets the state invest up to 5% of some funds in cryptocurrencies. The Senate of North Carolina is currently reviewing that law.
In March 2025, President Donald Trump signed an order to create a national Strategic Bitcoin Reserve and a Digital Asset Stockpile, showing support for holding Bitcoin and other digital currencies at the federal level. On 29th April, the US lawmakers had passed the legislation, and the bill was adopted by the Arizona House of Representatives.
Also Read: Crypto Legislation Passed in Arizona Awaits Governor’s Nod
