Arizona Governor Katie Hobbs has vetoed two bills, HB 2324 and SB 1025, which proposed allocating up to 10% of the state’s treasury funds into Bitcoin.
Governor Hobbs cited significant concerns regarding the inherent volatility and associated risks of cryptocurrency investments as core reasons for the decision. Her move emphasizes prioritizing fiscal prudence and protecting public funds from market fluctuations.
The veto has drawn mixed reactions. Proponents of the bills argue that introducing Bitcoin into the state’s portfolio could offer significant long-term growth potential. However, critics and those agreeing with the Governor emphasize the fundamental need for stability and minimal risk exposure when managing taxpayer dollars.
Arizona’s stance reflects a broader pattern of caution at the state level towards dedicating public reserves to cryptocurrency assets, a sentiment echoed in recent decisions by other major U.S. cities like Miami and New York exploring similar initiatives.
Governor Hobbs’ decision underscores the importance state officials place on fiduciary responsibility and safeguarding public resources against the uncertainties of the cryptocurrency market.