Arizona Governor Katie Hobbs has vetoed legislation that would have allowed the state to invest in cryptocurrency. The bill, known as the “Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments,” Hobbs wrote in a letter to Sen. Warren Petersen, president of the state Senate.
“Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency.”
State lawmakers had recently approved legislation to establish a bitcoin reserve, permitting the state to invest up to 10% of its public funds in digital assets. Republican state Sen. Wendy Rogers told NBC News last week that it was in Hobbs’ best interest to sign the legislation, which would have created the first state-level bitcoin reserve in the country.
“Crypto and bitcoin have a huge following nationwide and in Arizona. They are wildly popular with the youth and independents,” Rogers said.
Arizona vetoes bitcoin reserve plan
“I certainly hope she signs it because she can take credit and it will make her look good.”
Rogers voiced her disappointment with Hobbs on social media following the governor’s decision, writing: “Politicians don’t understand that Bitcoin doesn’t need Arizona. Arizona needs Bitcoin.”
The efforts by state lawmakers to establish an Arizona bitcoin reserve mirror plans by others to create similar reserves on a larger scale, indicating a growing mainstream adoption of cryptocurrencies. Observers believe it is becoming increasingly accepted, both on Wall Street and beyond, that digital assets may no longer be confined to speculative circles.
As bitcoin ETFs become a growing component of diversified portfolios and regulatory frameworks begin to take shape, the decentralization dream that once defined crypto appears to be evolving into a new era of structured integration. It’s no longer novel to see major investment firms exploring crypto. For instance, Morgan Stanley is preparing to offer cryptocurrency trading to its vast customer base as soon as next year, potentially introducing millions of retail investors to digital assets via a familiar platform.
Meanwhile, Charles Schwab is preparing to offer spot crypto trading for bitcoin and ethereum within the year, aiming to meet increasing demand from traditional investors. The world’s largest asset manager, BlackRock, is also pushing blockchain technology deeper into conventional finance. The firm recently announced plans to register a new share class of its $150 billion money market fund on a blockchain, a step designed to enhance transparency and operational efficiency.
