Arizona’s Bitcoin Rejection Sparks Backlash from Industry Leaders and Lawmakers
Governor Hobbs vetoes groundbreaking Bitcoin reserve bill, prompting fierce criticism from crypto community and state lawmakers
Bitcoin Advocates Slam Arizona Governor Over Veto
In a decision that’s drawn swift condemnation from prominent figures in the cryptocurrency industry, Arizona Governor Katie Hobbs vetoed a bill that would have allowed the state to hold Bitcoin as part of its official financial reserves.
The proposed legislation — Senate Bill 1025, known as the Arizona Strategic Bitcoin Reserve Act — would have permitted the state to invest seized funds into Bitcoin, establishing a strategic digital asset reserve. But Hobbs shut it down, citing concerns over responsible fiscal management.
“The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments,” Hobbs said in a public statement on May 2.
“This Will Age Poorly”: Bitcoin Community Fires Back
Governor Hobbs’ decision has ignited a wave of pushback from both Bitcoin advocates and state officials, who argue that the state is missing a generational opportunity.
Jameson Lopp, co-founder of Casa and noted cypherpunk, dismissed the veto outright:
“This will age poorly,” he warned on social media.
Entrepreneur Anthony Pompliano criticized the governor’s judgment, remarking:
“Imagine the ignorance of a politician to believe they can make investment decisions. If she can’t outperform Bitcoin, she must buy it.”
Crypto lawyer Andrew Gordon echoed the sentiment, stressing the need for forward-thinking leadership:
“We need more elected officials who understand that Bitcoin and crypto are the future.”
“Arizona Needs Bitcoin” — Senator Rogers Vows to Refile Bill
Arizona State Senator Wendy Rogers, who co-sponsored the bill with Representative Jeff Weninger, expressed her frustration, saying:
“Politicians don’t understand that Bitcoin doesn’t need Arizona — Arizona needs Bitcoin.”
Rogers also pointed out a contradiction in the governor’s reasoning: Arizona’s state retirement fund already holds shares in MicroStrategy (MSTR), a company that has become virtually synonymous with Bitcoin accumulation.
“Which is basically a leveraged Bitcoin ETF,” she argued. “Arizona’s Strategic Bitcoin Reserve bill will be back. HODL.”
MicroStrategy’s stock surged 32% in April, marking its best monthly performance since November 2024.
Skeptics and Setbacks Across the Nation
While Bitcoin enthusiasts continue to push for state-level crypto adoption, not everyone is convinced. Long-time crypto critic Peter Schiff sided with Governor Hobbs, stating:
“The government should not be making decisions to use public funds to speculate in cryptocurrencies.”
Had the bill passed, Arizona would have been the first U.S. state to establish a government-managed Bitcoin reserve — a historic milestone in the digital asset space.
Instead, it joins a growing list of states where similar efforts have failed or stalled. Oklahoma, Montana, South Dakota, and Wyoming have all seen comparable proposals either shelved or withdrawn in recent months.
What’s Next for State-Level Bitcoin Adoption?
Despite the setback, Senator Rogers has vowed to refile the bill in the next legislative session, signaling that the battle for Bitcoin inclusion at the state level is far from over.
For now, Arizona remains on the sidelines of what many believe is the next evolution in sovereign-level investment strategies.
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