Arizona Governor Vetoes Bold Plan to Add Bitcoin to State Reserves

Arizona Governor Katie Hobbs vetoed Senate Bill 1025 on May 3, 2025. The Arizona Bitcoin reserve bill aimed to let the state hold Bitcoin in its official financial reserves. The Digital Assets Strategic Reserve bill would have allowed Arizona to invest seized funds in Bitcoin and manage them under a state-run program. The veto was confirmed on the Arizona State Legislature’s official website. Governor Hobbs addressed Arizona Senate President Warren Petersen in a written statement. She wrote, She added, The Arizona crypto bill passed the state House on April 28 with 31 votes in favor and 25 against. However, it could not move forward after Hobbs’ decision. Arizona Crypto Bill Faced Financial and Political Opposition Senate Bill 1025 sought to create a state digital asset reserve using Bitcoin (BTC), which was valued at $95,818 at the time of the vote. The plan targeted seized funds as a source for the investment. Governor Hobbs had earlier made clear she would veto bills that were not connected to bipartisan disability funding deals. The Arizona Bitcoin reserve bill did not meet that requirement. Under the proposal, state officials would have managed the digital asset holdings. The goal was to make Arizona the first U.S. state with an active Bitcoin reserve policy. The veto ended those efforts. No replacement bill has been introduced so far, and no new timeline has been proposed by the Arizona legislature. SB1373 Bitcoin Bill Still Pending A second proposal, SB1373, remains under consideration in the state Senate. This bill would allow the Arizona treasurer to invest up to 10% of the state’s rainy-day fund in digital assets like Bitcoin. The SB1373 Bitcoin bill has not yet reached a final vote. If approved, it would give Arizona one of the largest state digital asset reserve programs in the country. The Arizona treasurer has not commented on the bill. No vote date has been announced. The state legislature continues to review the proposal. Arizona Joins Other States with Failed Bitcoin Reserve Plans Several U.S. states have introduced similar digital asset investment bills. However, most have failed. Recent examples include Oklahoma , Montana, South Dakota, and Wyoming. Each of these states either paused or withdrew their crypto reserve efforts. The Arizona crypto bill is now part of that broader trend. Despite growing interest in digital assets, most U.S. state Bitcoin plans have struggled to reach final approval. Only a few states have made progress. In contrast to Arizona’s veto, North Carolina passed a digital assets bill on April 30, 2025. The Digital Assets Investment Act allows the state treasurer to invest up to 5% of certain funds in approved cryptocurrencies. That North Carolina bill has now moved to the state Senate for further review. It remains under debate. Trump Executive Order Pushes for Strategic Bitcoin Reserve At the federal level, U.S. President Donald Trump signed an executive order in March 2025. The directive proposed creating a Strategic Bitcoin Reserve and a Digital Asset Stockpile . The executive order has increased attention on state-level crypto policies, including Arizona Bitcoin reserve efforts. However, it has not yet led to any federal law or program. The U.S. Treasury has not released any implementation plan for Trump’s Strategic Bitcoin Reserve. No federal agencies have issued updates since the March order. While Arizona rejected the use of Bitcoin in its state reserves, the national conversation on digital assets continues. Other U.S. state Bitcoin plans remain in different stages of review.