Arizona Governor Katie Hobbs vetoed a bill that would have allowed the state to invest seized funds into Bitcoin, sparking backlash from Bitcoin advocates like Jameson Lopp and Anthony Pompliano.
Supporters of the bill, including State Senator Wendy Rogers, argued that Bitcoin could benefit Arizona’s financial future and vowed to reintroduce the legislation in future sessions.
Opponents, like Peter Schiff and Governor Hobbs, defended the veto, saying public funds shouldn’t be used for speculative crypto investments; similar efforts have also failed in other U.S. states.
Welp, it’s official—Arizona won’t be adding Bitcoin to its state reserves anytime soon. Governor Katie Hobbs just vetoed a bill that could’ve made the state the first in the U.S. to hold Bitcoin as part of its strategic financial reserves. And let’s just say… the crypto crowd is not happy.
“This Will Age Poorly,” Says Bitcoiners
Jameson Lopp, co-founder of Casa and well-known cypherpunk, didn’t mince words after the veto dropped on May 2.
“This will age poorly,” he posted on X.
Crypto investor Anthony Pompliano chimed in too, criticizing Hobbs for, in his words, thinking she’s smart enough to “make investment decisions” that outperform Bitcoin.
“If she can’t outperform Bitcoin, she must buy it,” he added.
Ouch.
Attorney Andrew Gordon echoed the sentiment, calling for more politicians who understand crypto isn’t some fad—it’s “the future.”
Governor Hobbs vetoed Arizona's Bitcoin Reserve Bill, because it is too "untested" for the state's retirement system.
FACT: Arizona's pension funds are only 76% funded, ranking 36th in the nation.
The bill in question, the Arizona Strategic Bitcoin Reserve Act, would’ve allowed the state to take seized assets and convert them into Bitcoin, with a dedicated reserve managed by officials. It was co-sponsored by State Senator Wendy Rogers and Representative Jeff Weninger.
Rogers didn’t hold back either.
“Politicians don’t understand that Bitcoin doesn’t need Arizona. Arizona needs Bitcoin,” she said. She also made it clear she’s not giving up: “The bill will be back. HODL.”
Rogers even pointed out that Arizona’s retirement system already holds stock in MicroStrategy (MSTR)—Michael Saylor’s company famously loaded with Bitcoin.
“It’s basically a leveraged Bitcoin ETF,” she said.
🤯 Katie Hobbs vetoes the Bitcoin Strategic Reserve bill in Arizona that passed their house and senate.
“The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments,” she stated.
She didn’t seem too interested in letting state funds dip their toes into crypto just yet.
Schiff Sides With the Veto
And guess who popped up to support the governor? Peter Schiff, of course. The longtime Bitcoin skeptic said public money shouldn’t be used to “speculate in cryptocurrencies.” No surprise there.
A Growing Pattern Across the U.S.
Arizona isn’t the only state hitting pause on Bitcoin adoption. Similar proposals have fizzled out in Oklahoma, Montana, South Dakota, and Wyoming. Looks like crypto still has a long road ahead before it’s part of mainstream state-level finance.
But don’t count the Bitcoin crowd out just yet—they’re not known for giving up without a fight.
