In a controversial move that has sent ripples through the cryptocurrency community, Arizona Governor Katie Hobbs vetoed the proposed Arizona Strategic Bitcoin Reserve Act on May 2, 2025. This decision, which would have paved the way for Arizona to invest state funds in Bitcoin, has drawn sharp criticism from Bitcoin advocates and government officials alike.
Outcry from the Bitcoin Community
Governor Hobbs’ decision to veto the bill has been met with substantial backlash from prominent figures within the cryptocurrency sector. Jameson Lopp, Casa co-founder and noted cypherpunk, expressed his dismay succinctly on social media, suggesting that Hobbs’ decision “will age poorly.” Meanwhile, renowned Bitcoin entrepreneur Anthony Pompliano didn’t hold back, deriding the move as a glaring example of political ignorance. “Imagine the ignorance of a politician to believe they can make investment decisions,” Pompliano remarked, underscoring a broader sentiment that elected officials should embrace Bitcoin as an integral component of the financial future.
Echoing this sentiment, crypto lawyer Andrew Gordon called for a new breed of politicians who grasp the transformative potential of Bitcoin and cryptocurrencies. “We need more elected officials who understand that Bitcoin and crypto are the future,” Gordon emphasized, reflecting a widespread belief among crypto enthusiasts that the digital currency is not just a passing trend but an inevitable shift in financial paradigms.
Political and Economic Ramifications
The Arizona Strategic Bitcoin Reserve Act would have allowed the state to invest seized funds into Bitcoin, creating a reserve overseen by state officials. Wendy Rogers, who co-sponsored the bill alongside State Representative Jeff Weninger, voiced her disappointment, emphasizing that Arizona needs Bitcoin, not the other way around. “Politicians don’t understand that Bitcoin doesn’t need Arizona. Arizona needs Bitcoin,” Rogers asserted, highlighting the potential missed opportunity for the state to position itself as a leader in digital asset management. This follows a pattern of institutional adoption, which we detailed in our analysis of corporate treasury investments.
Interestingly, Arizona’s state retirement system already holds stocks in Michael Saylor’s MicroStrategy, a company heavily invested in Bitcoin. Rogers pointed out that this is “basically a leveraged Bitcoin ETF,” hinting at the inconsistency in Hobbs’ decision. The stock price of MicroStrategy saw a remarkable 32% increase in April, marking its largest monthly gain since November 2024 and suggesting significant market confidence in Bitcoin-related investments.
Skepticism and the Road Ahead
Not everyone, however, was critical of Hobbs’ decision. Peter Schiff, a well-known crypto skeptic, sided with the governor, arguing that government should refrain from using public funds to speculate in cryptocurrencies. “The government should not be making decisions to use public funds to speculate in cryptocurrencies,” Schiff stated, lending a voice to the cautionary perspective that still resonates with many traditional investors.
The bill’s failure in Arizona reflects a broader pattern of similar legislative attempts faltering across the United States. States like Oklahoma, Montana, South Dakota, and Wyoming have seen comparable proposals stall or be withdrawn recently, illustrating the challenges crypto advocates face in integrating digital currencies into state financial systems. As explored in our recent coverage of U.S. Congress Braces for Intense Debate Over Crypto Legislation This Summer, the regulatory landscape remains a significant hurdle.
As Wendy Rogers plans to refile the bill in her next session, the debate over Bitcoin’s role in state investment strategies is far from over. The conversation raises critical questions about the balance between innovation and caution in government investment strategies—questions that will likely persist as digital currencies continue to gain traction globally.
With Arizona’s ambitious attempt now in limbo, the spotlight remains on how other states and regions might navigate the complex intersection of cryptocurrency and public policy. Whether Bitcoin will eventually secure a place in state treasuries remains an open question, but one thing is certain: the conversation around its potential isn’t going away anytime soon.
Source
This article is based on: Bitcoiners blast Arizona governor’s ‘ignorance’ after Bitcoin bill veto
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
