According to Cointelegraph, Arizona Governor Katie Hobbs vetoed a bill that would have allowed the state to hold Bitcoin as an official reserve, ending Arizona's effort to become the first state to adopt this policy.
The Digital Asset Strategic Reserve Act allows Arizona to invest confiscated funds in Bitcoin, managed by state officials. The bill was officially vetoed on the state legislature's website.
Hobbs stated that Arizona's retirement system is one of the strongest in the nation because it makes prudent investments. She believes retirement funds should not be used for untested investments like virtual currencies.
On April 28, the state House passed the bill with 31 votes in favor and 25 against. Hobbs had previously stated that she would veto any legislation unrelated to disability funding.
Another bill, SB1373, allows the state treasurer to invest up to 10% of the emergency fund in digital assets, which has not yet undergone a final vote. Arizona joins other states, where similar proposals have failed in Oklahoma, Montana, South Dakota, and Wyoming.
In contrast, the North Carolina House passed a digital asset investment bill that allows the state treasurer to invest up to 5% of funds in approved cryptocurrencies. The bill has been forwarded to the state Senate for review.
The state-level effort to create a Bitcoin reserve comes as U.S. President Donald Trump and Republican lawmakers push for similar actions at the federal level. Trump signed an executive order in March proposing the establishment of a 'strategic Bitcoin reserve' and a 'digital asset reserve.'
