Arizona Governor Katie Hobbs has exercised her veto power on legislation proposing the establishment of a Bitcoin reserve fund, signaling a cautious stance on the state’s direct involvement in cryptocurrency investment.
Hobbs vetoed HB 2324, legislation that suggested creating the ‘Bitcoin and Digital Assets Reserve Fund’. This fund was proposed to be financed using proceeds from criminal asset forfeitures. The Governor justified the veto primarily by expressing concern that such funding could disincentivize local law enforcement agencies from pursuing asset forfeiture actions.
This action is consistent with the Governor’s previous refusals of related bills. Earlier attempts, notably SB 1025 and SB 1373, which sought to authorize direct state investment in digital assets and create a strategic reserve fund, were also rejected under her administration.
Concurrently, Arizona lawmakers adopted a more conservative approach. Governor Hobbs signed HB 2749 into law. This compromise bill establishes a state reserve fund, but crucially, does not involve direct investment by the state treasury in digital assets. Instead, HB 2749 allows the fund to hold assets already classified as unclaimed property, explicitly including virtual currencies left dormant or unclaimed by their rightful owners.
These developments underscore Arizona’s measured approach to integrating cryptocurrency within state finance, contrasting with actions seen in states like Connecticut. The state appears focused on minimizing direct taxpayer risk in volatile digital asset markets while acknowledging their presence through mechanisms like managing unclaimed virtual currencies.