Arizona Governor Vetoes Bitcoin Bill, Faces Backlash From Community

Arizona Governor Katie Hobbs has sparked criticism from Bitcoin advocates and some government officials after vetoing legislation that would have allowed the state to hold Bitcoin in its official reserves.The bill, known as the Arizona Strategic Bitcoin Reserve Act, aimed to authorize the state to invest seized funds into Bitcoin and establish a reserve managed by public officials.Governor Hobbs vetoed the measure on May 2, citing concerns over risk.Crypto Community Reacts Sharply to Controversial DecisionThe move drew swift backlash from prominent figures in the crypto community.Casa co-founder Jameson Lopp wrote on X, “This will age poorly,” while Bitcoin advocate Anthony Pompliano criticized the veto, saying, “Imagine the ignorance of a politician to believe they can make investment decisions.”He added, “If she can’t outperform Bitcoin, she must buy it.”Wendy Rogers, who co-sponsored the bill with Rep. Jeff Weninger, expressed her disappointment and pledged to reintroduce it in the next legislative session.“Politicians don’t understand that Bitcoin doesn’t need Arizona. Arizona needs Bitcoin,” she said, noting that the state’s retirement system already holds shares in MicroStrategy (MSTR), a company widely seen as a Bitcoin proxy.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.Perhaps the 'tested' investment strategies aren't working? pic.twitter.com/k4RkpQHEAc— Julian Fahrer (@Julian__Fahrer) May 3, 2025Crypto lawyer Andrew Gordon also weighed in, saying, “We need more elected officials who understand that Bitcoin and crypto are the future.”Not everyone in the financial space disagreed with the veto. Longtime crypto critic Peter Schiff supported Hobbs’s decision, arguing that governments should not “speculate in cryptocurrencies” using public funds.Arizona would have become the first U.S. state to hold Bitcoin reserves had the bill passed. Similar proposals have failed in states like Oklahoma, Montana, South Dakota, and Wyoming.US Government Unlikely to Buy BitcoinThe United States is unlikely to significantly increase its Bitcoin holdings, said BitMEX co-founder Arthur Hayes, citing the country’s ballooning national debt and the cultural image tied to Bitcoin investors.In a recent interview, Hayes cast doubt on the idea that the U.S. would proactively build a “strategic Bitcoin reserve,” beyond the nearly 200,000 BTC already in its possession.However, despite the US government’s lack of interest in purchasing Bitcoin, public companies continue to show interest in the leading cryptocurrency.Just recently, Michael Saylor’s firm, Strategy, announced it is doubling its capital raising plan to $84 billion in an aggressive push to acquire more Bitcoin.The Virginia-based company disclosed Thursday that it has filed to sell an additional $21 billion in common shares after depleting a previous program of the same size authorized in October.It also doubled its debt issuance target from $21 billion to $42 billion, leaving $14.6 billion remaining under its current authorization.In the first quarter of the year, publicly traded companies increased their Bitcoin holdings by 16.1%, signaling continued institutional interest in the leading cryptocurrency despite market volatility.The post Arizona Governor Vetoes Bitcoin Bill, Faces Backlash From Community appeared first on Cryptonews.