Arizona Governor Katie Hobbs has vetoed a new bill aimed at creating a reserve fund based on cryptocurrencies, using her veto power against House Bill 2324.
The bill aimed to allocate a portion of confiscated cryptocurrencies to establish a digital reserve fund managed by the state, but the governor believed that the bill would discourage local entities from participating in confiscation operations.
Despite the bill receiving clear support in the House with 34 votes in favor and 22 against, the possibility of overriding the veto seems unlikely, especially with the evident divide in opinions regarding the use of cryptocurrencies within state financial frameworks.
Governor Maintains Cautious Stance on Cryptocurrency Legislation Hobbs' recent decision is not the first of its kind, as she previously used her veto in May against Senate Bill 1025, which would have allowed the state to invest up to 10% of its funds in Bitcoin.
At that time, she described cryptocurrencies as "unproven investments," reflecting her ongoing reservations about integrating these digital assets into public financial frameworks. She also rejected Senate Bill 1373, which proposed a similar reserve mechanism for confiscated cryptocurrencies.
Despite these reservations, Hobbs showed limited flexibility in dealing with digital assets by signing House Bill 2749 in May. The law allowed the management of cryptocurrencies under clear financial and regulatory laws without relying on confiscated assets, in a move seen as a compromise between modern technology and legal discipline.
U.S. States Divided on Adopting Cryptocurrencies The conservative stance adopted by Arizona, led by Hobbs, contrasts with the policies of several other U.S. states that have taken a pro-cryptocurrency approach. For example, Texas has approved the establishment of an official Bitcoin reserve, while New Hampshire has green-lighted government investment in cryptocurrencies and precious metals.
Six other states continue to explore similar initiatives, reflecting the wide variance in policies at the state level. The veto decision has sparked a wave of debate within the cryptocurrency community. Some supporters endorsed Hobbs' position as cautious and consistent with governance principles, while others viewed the decision as a missed opportunity to regulate the use of cryptocurrencies.
