Arizona Governor Katie Hobbs vetoed a bill allowing the state to hold Bitcoin reserves, sparking criticism from Bitcoin advocates. Key figures like Anthony Pompliano and Wendy Rogers expressed discontent, emphasizing a need for knowledgeable officials in cryptocurrency. Despite the setback, Rogers plans to reintroduce the bill. The veto highlights ongoing debates on cryptocurrency within state legislation, echoing failed efforts in other states like Wyoming and Oklahoma.
The recent veto from Arizona Governor Katie Hobbs regarding a bill intended to allow the state to hold Bitcoin in its official reserves has sparked outrage among Bitcoin enthusiasts and cryptocurrency advocates. The vetoed Arizona Strategic Bitcoin Reserve Act aimed to let Arizona invest seized funds in Bitcoin, and many saw this as a progressive step for the state. Prominent Bitcoin figure Jameson Lopp expressed his disapproval on social media, suggesting that this decision would not be viewed favorably in the future.
Entrepreneur Anthony Pompliano echoed these sentiments, questioning the judgment of politicians who dismiss Bitcoin’s potential. Pompliano pointedly remarked, “If she can’t outperform Bitcoin, she must buy it,” underscoring the belief that proper investment in Bitcoin is vital for future financial strategy. Andrew Gordon, a prominent crypto lawyer, added to the chorus, stating a pressing need for officials familiar with Bitcoin and crypto.
Disappointment was also voiced by Wendy Rogers, a state senator who co-sponsored the bill alongside State Representative Jeff Weninger. She lamented that politicians fail to grasp that Bitcoin presents more opportunity to Arizona than vice versa. The vetoed bill was intended not only to improve state investment strategy but also hinted at broader acceptance of cryptocurrency.
On May 2, Governor Hobbs officially vetoed Senate Bill 1025, citing the strength of the Arizona State Retirement System, which she claims is built on sound investment practices. In her statement, Hobbs noted her commitment to informed decision-making regarding public funds, calling the bill imprudent. Rogers, however, is undeterred and plans to reintroduce the bill in the next legislative session, asserting that Arizona’s retirement system already invests in Michael Saylor’s Strategy (MSTR), a stock that imitates Bitcoin’s price action.
With the stock of the Strategy experiencing a notable 32% increase in April, Rogers is optimistic about repeating such performance through a Bitcoin reserves approach. It’s worth mentioning that Arizona was poised to be the first state to establish a Bitcoin Strategic Reserve, a precedent that might have influenced other states to follow suit. However, Arizona now joins a lineup of states where similar initiatives have either failed or stalled, including Oklahoma, Montana, South Dakota, and Wyoming, raising questions about the future landscape of cryptocurrency legislation.
Interestingly, notable crypto skeptic Peter Schiff supported Hobbs’s stance, arguing against the government using taxpayer funds for cryptocurrency speculation. This highlights the continuing divide among policymakers regarding the role of digital currencies in state financial strategies, leaving the future of state-level Bitcoin initiatives looking rather complex.
