Arizona Governor Vetoes Bitcoin Reserve Bill, Cryptocurrency Inclusion in State Finances Meets Resistance Again

Shortly after hopes were raised that Arizona would become the first state in the U.S. to include Bitcoin (BTC) in its official fiscal reserves, the effort has suffered a setback. Governor Katie Hobbs recently formally vetoed a proposal called the Digital Asset Strategic Reserve Act, preventing the state from including Bitcoin in its fiscal reserves.The bill was originally intended to allow Arizona to use confiscated assets to invest in Bitcoin and use it as part of an officially regulated digital asset reserve pool. Although the proposal gained some support in the state legislature and was eventually passed by the House of Representatives with a vote of 31 in favor and 25 against, it failed to get past the governor.In a statement to state Senate President Warren Petersen, Hobbs made it clear that "Arizona people's retirement funds should not be used as a tool for the state government to experiment with unproven assets such as virtual currencies." She emphasized that Arizona's public retirement system is robust because it has always adhered to a prudent and sound investment strategy.It is worth noting that this veto is not an isolated incident. Hobbs has previously stated that she would reject any form of Bitcoin or crypto asset proposal unless the legislative proposal is directly related to improving the financial management of people with disabilities.Although the bill was rejected, another related proposal, SB1373, is still awaiting a final vote. The bill gives the state treasurer the authority to invest up to 10% of the emergency fund in digital assets such as Bitcoin. However, its prospects are not optimistic due to current political positions and regulatory concerns.Arizona's move reflects the huge differences among US states on whether to include Bitcoin in fiscal assets. Similar legislative attempts have not made breakthroughs in Oklahoma, Montana, South Dakota and Wyoming, and the proposals have either been withdrawn or stagnated.In contrast, North Carolina has recently taken a more positive attitude in the field of digital assets. The state House of Representatives passed a bill on April 30 that allows the treasurer to invest up to 5% of a specific fund in approved crypto assets. The bill has now entered the state Senate for review.More broadly, the concept of establishing a "strategic Bitcoin reserve" has also begun to enter the policy vision at the federal level. In March this year, the US government signed an executive order proposing the initial concept of building a "national digital asset reserve."Although Bitcoin is still in the early stages of fiscal policy at the national and state levels, this trend shows that digital assets are gradually gaining attention from policymakers. However, before the volatility of the crypto market, compliance and public risk perception are fully resolved, attempts such as Arizona may still face great resistance.