Thomas Daniels
Arizona Governor Katie Hobbs faced sharp criticism from Bitcoin proponents and financial policy advocates after vetoing Senate Bill 1025, known as the Arizona Strategic Bitcoin Reserve Act. The legislation, spearheaded by State Senator Wendy Rogers and Representative Jeff Weninger, sought to authorize the state to invest seized funds into Bitcoin and create a cryptocurrency reserve under government management.
Rogers, a vocal supporter of digital assets, emphasized the economic shift Bitcoin represents. “Bitcoin doesn’t need Arizona—Arizona needs Bitcoin,” she stated, underscoring her intent to reintroduce the bill in the next legislative session. She also pointed out that Arizona’s state retirement fund already holds shares in MicroStrategy (MSTR), a company known for its substantial Bitcoin holdings. “Which is basically a leveraged Bitcoin ETF,” Rogers noted.
The bill’s rejection has sparked broader debate among cryptocurrency advocates and skeptics. Casa co-founder Jameson Lopp responded on social media, warning, “This will age poorly.” Prominent investor and Bitcoin entrepreneur Anthony Pompliano criticized Hobbs’s judgment, stating, “Imagine the ignorance of a politician to believe they can make investment decisions,” and added, “If she can’t outperform Bitcoin, she must buy it.”
Crypto attorney Andrew Gordon echoed similar sentiments, urging for leadership attuned to emerging financial technologies. “We need more elected officials who understand that Bitcoin and crypto are the future,” Gordon said.
Governor Hobbs defended her decision, asserting that the Arizona State Retirement System remains among the nation’s most robust due to prudent and informed investment choices. “Today, I vetoed Senate Bill 1025,” she stated on May 2. “The system’s strength lies in its commitment to sound financial stewardship.”
Notably, well-known gold advocate and cryptocurrency critic Peter Schiff supported the veto, arguing that public funds should not be allocated toward speculative digital assets. “The government should not be making decisions to use public funds to speculate in cryptocurrencies,” Schiff said.
If passed, Arizona would have become the first U.S. state to formally establish a Bitcoin reserve. The state now joins a growing list—including Oklahoma, Montana, South Dakota, and Wyoming—where similar proposals have either stalled or been withdrawn.
