Arizona stops Bitcoin Reserve Plan after Governor has rejected law on crypto investments

Arizona's endeavor to keep Bitcoin as the first US state as part of his official reserves was rejected.

Governor Katie Hobbs has a law With your veto Stopped that would have allowed state funds for digital assets to be allocated and thus prevent a historical turn in the state's financial policy.

The draft law, known as “Digital Assets Strategic Reserve Proposal”, provided for a confiscated state funds for investments in Bitcoin and to set up a state crypto reserve. Although the draft had passed both chambers of parliament, Hobbs officially refused on Friday, referring to concerns about financial stability and risks.

In her explanation, Hobbs referred to the strength of the Arizona pension system and emphasized that its success was due to prudent, traditional investment – not to speculation. She emphasized that retirement provision was not a place for experiments with assets such as cryptocurrencies, which she described as “unexpected”.

Although the draft law had gained approval-it was accepted in the House of Representatives with 31 votes against 25 no votes-he met with severe resistance from Hobbs, which had also threatened not to block related draft laws without a cross-party cooperation in the financing of disabled people with their veto.

A second proposal, SB1373, which provides for up to 10% of Arizona's reserves for digital assets, is still waiting for the final vote. In view of the governor's clear attitude, however, his future is uncertain.

Arizona is part of a growing list of states, including Montana, South Dakota, Oklahoma and Wyoming, in which similar initiatives for setting up crypto reserves have stalled or completely failed. Meanwhile, North Carolina has taken on an opposite course and recently submitted a draft law that would allow limited crypto investments by the state treasury.

These efforts reflect a broader initiative at the national level after President Donald Trump has already signed a regulation that provides for a Bitcoin reserve at federal level. For now, Arizona will not follow this example.