Governor Hobbs Vetoes Arizona Legislation on Bitcoin Pension Investments

Arizona’s Governor Katie Hobbs issued a veto on Senate Bill 1025, legislation that sought to authorize the allocation of up to 10% of state treasury holdings—including public pension funds—into Bitcoin and other digital assets.

In her official veto message to the Senate, Hobbs stated that pension savings must remain shielded from market speculation. She reiterated that the long-term security of Arizona’s retirement system is anchored in its carefully managed investment policy.

Bitcoin advocates didn’t hold back in response to Governor Hobbs’ veto.

• Jameson Lopp, co-founder of Casa, called it a bad chapter in policy history.
• Anthony Pompliano accused lawmakers of micromanaging investment strategy.
• Attorney Andrew Gordon said what’s needed is leadership that sees Bitcoin as part of the future—not something to be avoided.
• State Senator Wendy Rogers, who introduced the bill, announced plans to bring it forward again. She emphasized that Arizona’s pension system already holds indirect Bitcoin exposure through its stake in MicroStrategy, whose stock jumped more than 45% in the last month alone.

Julian Farah reports that Arizona’s pension funds are only 76.3% funded—raising long-term solvency concerns.

With the governor’s decision, Arizona joins five other states in rejecting Bitcoin investment proposals tied to public funds. Similar bills are currently under review in 19 states, but momentum has stalled in many. Recent attempts in:

• Oklahoma, 
• Montana, 
• South Dakota, 
• Pennsylvania, 
• and Wyoming failed to pass.

States like North Dakota remain in the exploratory phase but are already running into political and regulatory roadblocks.

Сheck this out: Uber Driver Turns Out to Be a Skilled Crypto Hacker

According to analysts, most of these crypto-related bills hit a familiar wall: officials unwilling to tie public finances to the unpredictability of highly volatile assets.

Meanwhile, Governor Hobbs is also weighing SB1373—a bill that would establish legal guardrails for how Arizona handles digital assets it acquires outside of standard budgeting, such as through confiscation or legal settlements.

Senate Bill 1373, if enacted, would define the legal and operational framework for safeguarding and reporting digital assets held by the state. It would further exclude such holdings from Arizona’s standard budgetary rules—a precedent established at the federal level following a directive signed by former President Donald Trump.

Governor Hobbs has not issued a formal decision on the bill, but her position is expected to significantly influence the evolution of the state’s digital asset governance.

Read on: Roswell Becomes First US City to Establish a Bitcoin Reserve