Arizona governor vetoes bitcoin reserve bill, calling crypto 'untested investment'
Quick Take
- Katie Hobbs, the Democratic Governor of Arizona, blocked a bill that would have allowed public funds in the state to invest up to 10% of their capital in virtual currencies.
- Several other states are weighing similar bitcoin reserve legislation, though none have yet been signed into law.
Arizona Governor Katie Hobbs has blocked a bill passed recently by the state's legislature that would have allowed the state's treasurer and retirement systems to invest up to 10% of their funds in virtual currencies such as bitcoin.
"The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments," Hobbs, a Democrat, wrote in a letter explaining her veto. "Arizonans' retirement funds are not the place for the state to try untested investments like virtual currency."
The bill was co-sponsored by two Republican State Legislature members and passed the Republican-majority state Senate and House of Representatives on April 26. Hobbs previously said she would not pass any new legislation until the state legislature passes a bipartisan funding solution that protects health care for Arizonans with disabilities.
The veto sparked criticism from prominent figures in the bitcoin community on X. "Impeach Katie Hobbs, she just screwed over Arizona," Bitcoin Magazine CEO David Bailey wrote.
State legislatures in a number of states, including Iowa, Missouri, and Texas, are weighing their own bitcoin strategic reserve bills, though none have been signed into law as of yet.
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