The Governor of Arizona, Katie Hobbs, has officially vetoed a bill that would have allowed the state treasury and retirement funds to invest up to 10% of their portfolio in cryptocurrencies, including Bitcoin. This move came after the bill had been passed by both the Arizona Senate and House of Representatives, indicating a certain level of legislative consensus before its final rejection.
In her veto explanation letter, Ms. Hobbs emphasized that Arizona's retirement system is currently among the strongest nationwide. According to her, this has been achieved through a cautious investment strategy based on highly transparent and proven financial channels. She argued that introducing digital assets like Bitcoin into retirement investment portfolios is too risky and experimental, incompatible with the safety and sustainability goals of public retirement funds.
Immediately following this statement, the cryptocurrency-supporting community expressed deep disappointment. On the social media platform X (formerly Twitter), David Bailey – CEO of Bitcoin Magazine – called for impeaching Governor Katie Hobbs, accusing her of causing long-term financial harm to Arizona residents.
While Arizona rejects the opportunity to pave the way for legalizing cryptocurrency investments in retirement funds, several other U.S. states such as Iowa, Missouri, and Texas are currently reviewing similar proposals. However, as of now, no state has officially passed any legislation allowing retirement funds to invest in cryptocurrencies.
