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Arizona has just rejected an ambitious bill aimed at integrating bitcoin into its official reserves. While several states are exploring this bold approach, Governor Katie Hobbs’ veto reignites the national debate on the future of BTC in public management and institutional finance.
In Brief
- The governor of Arizona vetoes a bill allowing bitcoin to be integrated into its reserves.
- A second similar bill is still pending, while other states like North Carolina are moving forward.
- The debate on institutional adoption of bitcoin intensifies at both state and federal levels.
Arizona Refuses to Integrate Bitcoin into Its Reserves
A setback for bitcoin in the state of Arizona. Democratic Governor Katie Hobbs vetoed on Friday the Digital Assets Strategic Reserve bill (SB1025), which would have allowed the state to invest part of its seized funds in BTC. Arizona could thus have become the first U.S. state to integrate cryptocurrency into its official reserves.
The bill, passed in April by the State House of Representatives (31 votes for, 25 against), proposed the creation of a strategic bitcoin fund managed by public officials. But Hobbs categorically rejected this approach. “Arizona’s retirement system is one of the strongest in the country because it is based on prudent and informed investments. The retirement funds of Arizonans are not a testing ground for unproven virtual assets,” she said in a message addressed to the local Senate president.
Other Initiatives Pending
A second bill, SB1373, which would allow allocating up to 10% of the state’s emergency reserve fund to digital assets like bitcoin, is still awaiting final vote. Arizona thus joins other states like Montana, South Dakota, and Oklahoma, where similar initiatives have failed. But momentum continues elsewhere.
North Carolina, meanwhile, has taken a step forward with the adoption by its House of the Digital Assets Investment Act, allowing investment of 5% of certain funds into cryptocurrencies. The bill is now in the hands of the local Senate. At the federal level, the Trump administration is also pushing for the creation of a “strategic bitcoin reserve” through an executive order signed in March.
The battle for institutional bitcoin is far from over. While Arizona hesitates, other states like California are heavily investing in Strategy’s BTC shares. Between political caution and strategic vision, bitcoin is gradually asserting itself in American budget debates. State adoption is no longer a question of “if“, but of “when“.
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The world is evolving and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in anything that is directly or indirectly related to blockchain and its derivatives. To share my experience and promote a field that I am passionate about, nothing is better than writing informative and relaxed articles.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
