Arizona Gov. Katie Hobbs vetoed a legislative bill that would allow the creation of Bitcoin reserves. Grand Canyon State is joining an increasing number of U.S. states where legislative efforts to invest state investments directly into Bitcoin have proven futile.
Governor Hobbs says Bitcoin is an untested investment, Governor Hobbs says
In the May 2 execution letter, Arizona Gov. Katie Hobbs vetoed the State Senate Bill No. 1025, which aims to allow digital assets to be part of the state’s official reserves.
Specifically, SB 1025 will allow the Arizona Treasury Department to allocate 10% of its custodial assets to Bitcoin and other virtual assets. In addition, the bill proposes the creation of a digital asset strategic reserve fund, aiming to hold all seized crypto assets in criminal and illegal operations.
It is worth noting that the Arizona Senate is led by Hon. Warren Petersen approved the bill on April 29 with a fierce competition of 31-25, a move that became the first state to establish a Bitcoin reserve after the U.S. federal government.
However, Governor Hobbs was consistent with the opposition and rejected SB 1025’s provisions after the approval of enforcement was proposed. The former social worker and Senate Minority Leader conveyed the decision to Senate President Peterson, citing the credibility of digital assets is an investment.
Arizona Governor said:
Today, I vetoed Senate Bill 1025. The Arizona retirement system is one of the most powerful countries in the country because it makes good and informed investments. Retirement funds in Arizona are not the place where the state tries to invest untested like virtual currencies.
After this development, Arizona pulled out of the game as the first U.S. country to create Bitcoin reserves after the Donald Trump administration pushed for the U.S. to create a crypto-friendly environment.
Sixteen states in the United States have introduced legislation related to the creation of Bitcoin reserves. State groups such as North Carolina New Hampshire have successfully passed the House Committee. Meanwhile, states such as Oklahoma, Pennsylvania, North Dakota, Wyoming, Montana, South Dakota and now Arizona have rejected the proposed reserve bill.
Crypto Market Overview
At press time, the past day fell by 0.82%, with the cryptocurrency market valued at $2.99 trillion. Meanwhile, the total transaction volume is now worth $48.77 billion.
Bitcoin is the Prime Minister’s cryptocurrency and has seen a market rebound in the past two weeks and is now worth $96,011. Other top crypto assets, including Ethereum, Solana and XRP, also followed the leading cryptocurrencies, with respective growth rates of 2.11%, 26.75% and 6.88% over the past month.
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