Arizona Governor Vetoes Bitcoin Reserve Legislation – Key Highlights
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Governor Katie Hobbs of Arizona has vetoed a legislative proposal that sought to establish a Bitcoin reserve. The Grand Canyon state joins an increasing number of US states where attempts to steer state investments toward Bitcoin have been unsuccessful.
Bitcoin and Crypto Are Not Reliable Investments, Says Governor Hobbs
In an executive letter dated May 2, Governor Katie Hobbs vetoed State Senate Bill 1025, which aimed to integrate digital assets into the state’s official reserves.
S.B. 1025 would have permitted the Arizona state treasury to allocate 10% of its managed assets to Bitcoin and other digital currencies. Additionally, the bill proposed the establishment of a Digital Assets Strategic Reserve Fund to safeguard crypto assets seized from criminal activities.
Notably, the Arizona Senate, led by Hon. Warren Petersen, approved the bill in a closely contested 31-25 vote on April 29, aspiring to be the first state after the US Federal Government to create a Bitcoin reserve.
However, Governor Hobbs aligned with the dissenting votes and rejected S.B. 1025 during the executive approval stage. The former social worker and Senate minority leader communicated her decision to Senate President Petersen, citing concerns regarding the reliability of digital assets as an investment.
The Arizona State Governor stated:
“Today, I vetoed Senate Bill 1025. The Arizona State Retirement System is among the strongest in the nation because it prioritizes sound, informed investments. The retirement funds of Arizonans should not be subjected to untested investments like virtual currency.”
Following this decision, Arizona exits the competition to be the first US state to create a Bitcoin Reserve, especially in light of the Donald Trump Administration’s push for a crypto-friendly environment.
A total of sixteen US states have introduced legislation regarding the establishment of a Bitcoin Reserve. States such as New Hampshire and North Carolina have successfully passed their House Committees. In contrast, proposals in states like Oklahoma, Pennsylvania, North Dakota, Wyoming, Montana, South Dakota, and Arizona have been rejected.
Crypto Market Overview
At the time of writing, the total cryptocurrency market capitalization stands at $2.99 trillion, reflecting a 0.82% decrease over the past day. The overall trading volume has reached $48.77 billion.
Bitcoin, the leading cryptocurrency, has experienced a market rebound over the last two weeks, currently valued at $96,011. Other prominent crypto assets, including Ethereum, Solana, and XRP, have also recorded gains of 2.11%, 26.75%, and 6.88% respectively over the past month.
BTC trading at $95,992 on the daily chart | Source: BTCUSDT chart on Tradingview.com
Featured image from iStock, chart from Tradingview
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