Katie Hobbs Vetoes Arizona's Bitcoin Investment Bill
Arizona Governor Vetoes Bitcoin Legislation; Status of Crypto Investment Bill Remains Unclear
In the latest development, Arizona Governor Katie Hobbs has vetoed Senate Bill 1025, also known as the "Arizona Strategic Bitcoin Reserve Act." This move effectively derails a legislative push to enable state treasurers and retirement systems to invest up to 10% of public funds in Bitcoin and cryptocurrency.
In a letter to Senate President Warren Petersen, Governor Hobbs expressed concerns about investing retirement funds into untested assets like Bitcoin. She highlighted the strength of Arizona's retirement system, built on sound and informed investments, and emphasized that "retirement funds are not the place" for such experimental investments.
By vetoing this bill, Arizona joins five other states that have rejected similar Bitcoin reserve proposals. As per a national tracker of such legislations, there are currently 19 states with pending legislation, indicating a growing interest in digital assets at the state level.
Reacting to the veto, Anthony Pompliano, head of Professional Capital Management, tweeted, "The ignorance of a politician to believe they can make investment decisions."
Senate Bill 1025 proposed a framework for the state to invest in digital assets and potentially store them in a federal "Strategic Bitcoin Reserve" if it were established. It was part of a broader crypto policy initiative in Arizona, which also included companion legislation SB1373. SB1373 remains unsigned and plans to manage digital assets acquired through appropriations or seizures, like those from criminal proceedings. Unlike SB1025, it does not authorize investment of public funds but rather establishes custody protocols and is exempted from the state's standard fiscal year lapse rules.
While SB1025 has been vetoed, the fate of SB1373 remains unclear. If signed, it could signal a more limited support for digital assets in Arizona's broader digital asset framework. Governor Hobbs' decision on SB1373 may indicate whether Arizona's digital asset policy survives beyond the current legislative session.
It's worth noting that the legislature cleared both measures earlier this year, but Governor Hobbs had signaled her intent to veto GOP-led proposals not tied to budget negotiations. Arizona now joins a growing list of states where crypto-related public finance legislation has stalled despite increasing national interest.
Bonus Insight: States with Rejected Bitcoin Reserves Proposals
Several U.S. states have seen their Bitcoin reserve proposals stall or fail. Here's a brief overview:
- Arizona: Arizona has vetoed the Digital Assets Strategic Reserve bill, blocking it from becoming law. A companion bill, SB1373, is still pending.
- Oklahoma: Oklahoma's Bitcoin reserve act died in committee.
- Montana: Montana's efforts to establish a Bitcoin reserve have not been successful.
- North Dakota: Similar to Montana, North Dakota's attempts at creating a Bitcoin reserve have not been fruitful.
- Wyoming: Wyoming too, has seen its Bitcoin reserve efforts fail.
In other states, like North Carolina, Bitcoin reserve proposals are still under consideration.
- Arizona Governor Katie Hobbs, in a recent move, vetoed Senate Bill 1025, also known as the "Arizona Strategic Bitcoin Reserve Act," preventing state treasurers and retirement systems from investing in Bitcoin and cryptocurrency.
- In her letter to Senate President Warren Petersen, Governor Hobbs voiced concerns about investing retirement funds into digital assets like Bitcoin, citing the strength of Arizona's retirement system built on sound investments.
- Phoenix joins five other states, including Oklahoma, Montana, North Dakota, and Wyoming, that have rejected similar Bitcoin reserve proposals, as per a national tracker of such legislation.
- There are currently 19 states with pending legislation related to digital assets, reflecting a growing interest in cryptocurrency at the state level.
- While SB1025 has been vetoed, the future of SB1373, another crypto-related bill in Arizona, remains uncertain.
- The decision on SB1373 could indicate whether Arizona's digital asset policy survives beyond the current legislative session, as it involves managing digital assets acquired through appropriations or seizures.
- Despite increasing national interest in crypto-related public finance legislation, many states, like Arizona, continue to face stalls or rejections in their attempts to establish Bitcoin reserves.
