Arizona Governor Katie Hobbs Vetoes Bitcoin Reserve Fund Bill, Citing Local Enforcement Concerns

Key Points

1. Governor Hobbs vetoed the bill due to concerns about the lack of a clear regulatory framework for state-controlled crypto forfeiture.

2. The bill aimed to create a strategic digital assets reserve funded by seized assets but was rejected as an 'untested investment.'

3. Arizona has a history of vetoing crypto-related bills, including Senate Bill 1373, which proposed a similar reserve fund.

4. The legislative process for HB 2324 saw fluctuating support, with initial rejection, revival by the Senate, and eventual passage before the veto.

5. Other U.S. states have moved forward with crypto reserve funds, while Arizona remains cautious, emphasizing jurisdictional alignment and regulatory clarity.