A proposal that would have allowed the state to invest up to 10% of its public funds in Bitcoin and other digital assets.
In her veto message, Governor Hobbs expressed concerns over the volatility and untested nature of cryptocurrencies. She said: “Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency.”
A Bold Proposal Meets Political Resistance
The bill, known as the Arizona Strategic Bitcoin Reserve Act, aimed to establish a state-managed BTC reserve. This is possible by investing seized funds in Bitcoin. Supporters argued that such a move could position Arizona as a leader in integrating digital assets into public finance. However, Governor Hobbs, a Democrat, emphasized the importance of maintaining the stability of the Arizona State Retirement System. It is considered one of the strongest in the nation due to its conservative and informed investment approach.
NEW:
“Arizona’s retirement funds are not the place for the state to try untested investments like virtual currency.” pic.twitter.com/MT6m2EyQH8
— Bitcoin News (@BitcoinNewsCom) May 5, 2025
Governor Hobbs’ veto underscores the cautious stance many policymakers are adopting regarding the inclusion of volatile assets like Bitcoin in public funds. While the potential for high returns exists, the risks associated with such investments remain a significant concern. This decision may influence other states considering similar proposals, highlighting the need for a balanced approach to integrating digital assets into public finance.
More About US Bitcoin Reserves
May 5, 2025, marks the deadline for U.S. Treasury Secretary Scott Bessent to submit a comprehensive evaluation regarding the establishment and management of the Strategic Bitcoin Reserve.
Will we see a Strategic Bitcoin Reserve soon?
pic.twitter.com/DMnQg4lKcJ
— Cointelegraph (@Cointelegraph) May 5, 2025
This requirement stems from President Donald Trump’s executive order issued on March 6, 2025, which mandates the creation of a national reserve funded by Bitcoin assets seized through legal proceedings. The evaluation is expected to address legal and investment considerations, including the appropriate custodial accounts for the reserve and any necessary legislation to operationalize its management.
Disclaimer
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