Arizona State Governor Katie Hobbs has vetoed a legislative bill that would have allowed the creation of a Bitcoin reserve. The Grand Canyon state joins a growing list of other US states where legislative efforts to direct state investment to Bitcoin have proven futile.
Bitcoin, Crypto An Untested Investment, Governor Hobbs Says
In an executive letter dated May 2, Governor Katie Hobbs of Arizona vetoed State Senate Bill 1025 that aimed to allow the adoption of digital assets as part of the state’s official reserves.
Specifically, S.B. 1025 would have allowed the Arizona state treasury to allocate 10% of its managed assets into Bitcoin and other virtual assets. Furthermore, the bill also proposed the creation of a Digital Assets Strategic Reserve Fund designed to hold all seized crypto assets from criminal and illegal operations.
Notably, the Arizona Senate House, headed by Hon. Warren Petersen, approved the bill in a keenly contested 31-25 vote on April 29 in a move to become the first state to establish a Bitcoin reserve after the US Federal Government.
However, Governor Hobbs has aligned with the dissenting votes and rejected the provisions of S.B. 1025 upon presentation for executive approval. The former social worker and Senate minority leader communicated this decision to Senate President Petersen, citing the credibility of digital assets as an investment.
The Arizona State Governor said:
Today, I vetoed Senate Bill 1025. The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments. Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency.
Following this development, Arizona drops out of the race for the first US state to create a Bitcoin Reserve following the push by the Donald Trump Administration to establish a crypto-friendly environment in the US.
Sixteen US states have introduced legislation related to creating a Bitcoin Reserve. States such as New Hampshire, North Carolina have successfully passed the House Committees. Meanwhile, states such as Oklahoma, Pennsylvania, North Dakota, Wyoming, Montana, South Dakota, and now Arizona have had their proposed reserve bill rejected.
Crypto Market Overview
At press time, the total crypto market is valued at $2.99 trillion following a 0.82% decline in the past day. Meanwhile, total trading volume is now valued at $48.77 billion.
Bitcoin, the premier cryptocurrency, has seen a market rebound in the past two weeks and is now valued at $96,011. Other top crypto assets, including Ethereum, Solana, and XRP, have also followed the leading cryptocurrency, reporting respective gains of 2.11%, 26.75%, and 6.88% in the past month.
Featured image from iStock, chart from Tradingview
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