Arizona’s push to integrate crypto into public finance has hit a roadblock. On May 13, Governor Katie Hobbs vetoed two key bills that aimed to bring Bitcoin into the state’s reserves and payment systems. This move comes just days after she approved a separate bill to regulate Bitcoin ATMs.
Crypto Bills Face Setback in Arizona
Governor Hobbs rejected Senate Bill 1373, which would have allowed Arizona to hold up to 10% of its rainy-day fund in cryptocurrencies like Bitcoin. This veto blocks the state from becoming the second in the U.S.—after New Hampshire—to officially add Bitcoin to its reserve assets.
In her letter to Senate President Warren Petersen, Hobbs explained:
“Current volatility in the cryptocurrency market does not make a prudent fit for general fund dollars.”
She emphasized that Arizona already passed a safer crypto bill—House Bill 2749—allowing unclaimed digital assets to be held by the state without putting public funds at risk.
Arizona Rejects Crypto Payments for Taxes
In addition to the Bitcoin reserve bill, Hobbs also vetoed Senate Bill 1024. This bill would have let Arizona residents use cryptocurrencies to pay taxes and civil obligations, potentially making Arizona the first state to integrate crypto into both treasury management and state payments.
The veto signals that the Governor isn’t ready to push crypto further into Arizona’s financial systems.
Community Reacts Strongly to Vetoes
The crypto community didn’t hold back. Anthony Pompliano, a well-known investor, criticized the Governor, saying:
“Imagine the ignorance of a politician to believe they can make investment decisions. If she can’t outperform Bitcoin, she must buy it.”
State Senator Wendy Rogers added:
“Politicians don’t understand that Bitcoin doesn’t need Arizona. Arizona needs Bitcoin.”
One Crypto Bill Did Pass
Governor Hobbs did sign House Bill 2387, which regulates Bitcoin ATM transactions. It limits cash deposits and withdrawals to help curb scams and money laundering.
However, critics argue that Arizona is more interested in regulating crypto than adopting it, a stance that frustrates many in the space.
Broader Trends: States Split on Bitcoin Reserves
While Arizona hesitates, other states are moving forward. New Hampshire, Wyoming, and Florida are embracing Bitcoin reserve laws. In fact, three U.S. states passed Bitcoin reserve bills within a single 24-hour span last week, fueling optimism among crypto advocates.
Arizona’s cautious stance mirrors the lack of federal guidance, making it harder for some states to take bold steps.
