Arizona Governor Katie Hobbs vetoed Senate Bill 1025, halting a proposal to create a state Bitcoin reserve fund.
The veto is consistent with Hobbs' consistent opposition to digital asset laws and has vetoed 75 pieces of legislation in 2025 alone.
Despite setbacks, lawmakers continue pursuing cryptocurrency-related legislation, with another bill pending Governor Hobbs’ decision.
Arizona Governor Katie Hobbs has vetoed Senate Bill 1025, rejecting a proposal to establish a State Strategic Bitcoin Reserve. The bill would have authorized investing up to 10% of state treasury and pension assets in Bitcoin and other digital assets.
State Strategic Bitcoin Reserve Faces Gubernatorial Veto
SB1025, or the “Arizona Strategic Bitcoin Reserve Act,” was vetoed on Friday night. Introduced by Senators Wendy Rogers and Jeff Weninger, the bill was written with the goal of Arizona becoming the first state in the U.S. to have a formal Bitcoin reserve policy.
The new legislation would have allowed the state to diversify its fiscal strategy by investing some of its reserves in digital assets. This was aimed at accommodating increasing institutional interest in cryptocurrencies and updating the state's investment practices.
Governor Hobbs, however, opposed the measure. In her veto message, she stated that Arizona’s retirement system remains stable due to its adherence to traditional and proven investment strategies. She added that investing public retirement funds in untested digital assets is not appropriate.
Hobbs Continues String of Vetoes on Digital Asset Bills
This marks the 75th bill Hobbs has vetoed in 2025, already surpassing the total number of vetoes she issued in all of 2024. Her record includes a high of 143 vetoes in 2023—the most by any Arizona governor.
Crypto policy observers noted that Hobbs has repeatedly opposed blockchain-related legislation. Her resistance comes amid broader policy disagreements with the legislature, particularly over funding for social programs.
Another bill, SB1373, which seeks to create a Digital Assets Strategic Reserve Fund, has passed both chambers and is currently awaiting the governor’s decision. Based on her current stance, the bill may face a similar outcome.
Lawmakers Attempt to Modernize Arizona's Financial Strategy with Bitcoin
The State Strategic Bitcoin Reserve proposal was designed to bring innovation to Arizona’s treasury management by including cryptocurrency in its asset base. The bill specifically targeted Bitcoin and other major digital currencies with strong liquidity.
If signed into law, Arizona would have taken the lead in digital asset adoption at the state level. However, Governor Hobbs’ continued opposition suggests such initiatives will face sustained resistance throughout her term.
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