Arizona Governor Katie Hobbs is facing significant backlash from Bitcoin supporters and certain government officials following her veto of a bill that would have permitted the state to include Bitcoin in its official reserves.
The legislation, referred to as the Arizona Strategic Bitcoin Reserve Act, sought to empower the state to invest seized assets in Bitcoin and create a reserve supervised by state officials.
On May 2, Governor Hobbs announced her veto, citing concerns regarding the associated risks.
Reactions from the Crypto Community
The decision was met with swift criticism from notable members of the cryptocurrency community.
Jameson Lopp, co-founder of Casa, took to X to express his views, stating, “This will age poorly.” Bitcoin advocate Anthony Pompliano also condemned the veto, suggesting that it reflects a lack of understanding among politicians regarding investment strategies. He added, “If she can’t outperform Bitcoin, she must buy it.”
State Senator Wendy Rogers, who co-sponsored the legislation with Representative Jeff Weninger, voiced her disappointment and committed to reintroducing the bill in the next legislative session. “Politicians don’t understand that Bitcoin doesn’t need Arizona. Arizona needs Bitcoin,” she argued, highlighting that the state’s retirement system already possesses shares in MicroStrategy, a company closely associated with Bitcoin.
Governor Hobbs vetoed Arizona’s Bitcoin Reserve Bill, as it remains too “untested” for the state’s retirement funds.
FACT: Arizona’s pension funds are only 76% funded, ranking 36th in the nation.
Perhaps the ‘tested’ investment strategies aren’t working? pic.twitter.com/k4RkpQHEAc
— Julian Fahrer (@Julian__Fahrer) May 3, 2025
Attorney Andrew Gordon added his perspective, stating, “We need more elected officials who understand that Bitcoin and crypto are the future.”
In contrast, long-time Bitcoin skeptic Peter Schiff supported the governor’s veto, arguing that public funds should not be used for speculation in cryptocurrencies.
If the bill had been enacted, Arizona would have become the first state in the U.S. to hold Bitcoin reserves. Previous attempts in states such as Oklahoma, Montana, South Dakota, and Wyoming have not succeeded.
Federal Government’s Stance on Bitcoin Acquisition
Arthur Hayes, co-founder of BitMEX, expressed skepticism regarding the likelihood of the U.S. government expanding its Bitcoin holdings. He cited the nation’s growing national debt and the prevailing cultural stereotypes surrounding Bitcoin investors as factors influencing this stance.
In a recent interview, Hayes cast doubt on the prospect of the U.S. proactively establishing a “strategic Bitcoin reserve,” beyond the nearly 200,000 BTC it currently possesses.
Despite the federal government’s apparent reluctance to invest in Bitcoin, interest remains high among public companies. Recently, Michael Saylor’s firm, Strategy, announced an ambitious plan to raise $84 billion to acquire more Bitcoin.
The Virginia-based company revealed on Thursday that it intends to sell an additional $21 billion in common shares after exhausting a similar program authorized last October. Additionally, it has raised its debt issuance target from $21 billion to $42 billion, with $14.6 billion still available under its current authorization.
In the first quarter of the year, publicly traded firms increased their Bitcoin holdings by 16.1%, indicating a sustained institutional interest in the cryptocurrency despite ongoing market fluctuations.
The post Arizona Governor Vetoes Bitcoin Bill, Faces Backlash From Community appeared first on Finance Newso.
