- Arizona lawmakers passed the Bitcoin reserve bill on April 28.
- Governor Katie Hobbs vetoed the bill on May 2, blocking it from becoming law.
- The bill would have made Arizona the first US state to hold Bitcoin reserves.
It made it right to the finish line, but wasn’t allowed to cross.
Arizona’s bid to become the first US state to hold Bitcoin as part of its official reserves has ended in a veto.
Governor Katie Hobbs formally struck down the Digital Assets Strategic Reserve bill on Friday, according to an update on the state legislature’s website.
The bill had passed its final House vote on April 28, but Hobbs followed through on a previous threat to veto any legislation not accompanied by a bipartisan deal on disability funding.
The legislation would have allowed Arizona to invest seized funds into Bitcoin and establish a reserve overseen by state officials.
A companion bill enabling the state treasurer to allocate up to 10% of Arizona’s rainy-day fund into digital assets like Bitcoin had also been advancing through committee but has not yet reached final approval.
Supporters said the move would position Arizona as a leader in digital asset policy, and proponents pointed to growing adoption by institutional investors and foreign governments.
Critics, however, warned that using public funds to buy volatile crypto assets amounted to fiscal recklessness.
Arizona now joins a growing list of states where similar legislation has stalled or failed.
Oklahoma’s version of the Bitcoin reserve act died in committee last month, while efforts in Montana, North Dakota, and Wyoming also fizzled in the first quarter.
Moving east
Meanwhile, momentum appears to be shifting eastward.
North Carolina’s House passed the Digital Assets Investment Act on April 30, which would allow its treasurer to invest up to 5% of certain funds in approved cryptocurrencies. The bill now heads to the Senate.
A related proposal could soon transfer crypto investment authority to a newly formed state agency, pending Senate approval.
According to Bitcoin Laws, more than 35 digital asset reserve bills remain active across 20 states, though passage has thus far remained elusive.
Kyle Baird is Inside Solana’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
