Arizona Governor Katie Hobbs Faces Backlash Over Bitcoin Bill Veto
Arizona Governor Katie Hobbs recently vetoed a bill that would have permitted the state to include Bitcoin in its official reserves, drawing sharp criticism from Bitcoin enthusiasts and several government officials. The proposed Arizona Strategic Bitcoin Reserve Act was designed to allow the state to invest in Bitcoin with seized funds and manage a reserve supervised by public officials. Hobbs rejected the bill on May 2, voicing concerns about the associated risks.
Crypto Enthusiasts and Officials React to Veto Decision
The veto was met with immediate backlash from the crypto world. Casa co-founder Jameson Lopp commented on X, “This will age poorly,” highlighting the skepticism surrounding the governor’s decision. Bitcoin proponent Anthony Pompliano also expressed his disapproval, questioning the wisdom behind political figures making investment choices and suggesting, “If she can’t outperform Bitcoin, she must buy it.” Wendy Rogers, one of the bill’s co-sponsors, shared her disappointment and vowed to reintroduce the legislation in the upcoming session, emphasizing that “Arizona needs Bitcoin,” especially since the state’s retirement system invests in MicroStrategy, a company often associated with Bitcoin investments.
Crypto lawyer Andrew Gordon echoed the sentiment for more crypto-savvy elected officials, while longstanding crypto skeptic Peter Schiff approved of Hobbs’s decision, arguing against government speculation in cryptocurrencies with public funds. Had it passed, Arizona would have been the pioneer U.S. state to hold Bitcoin reserves, amidst failed attempts in other states such as Oklahoma, Montana, South Dakota, and Wyoming.
US Government’s Bitcoin Holdings Unlikely to Increase
BitMEX co-founder Arthur Hayes recently remarked that the United States is unlikely to substantially boost its Bitcoin holdings due to its rising national debt and the stereotypes associated with Bitcoin investors, despite the nearly 200,000 BTC already owned. Nevertheless, public companies have demonstrated ongoing interest in Bitcoin, with Michael Saylor’s Strategy firm announcing plans to double its capital-raising effort to $84 billion to acquire more Bitcoin, even after a record loss. This initiative highlights the continuous institutional interest in Bitcoin amidst market fluctuations.
Tweet: Governor Katie Hobbs vetoes the Arizona Bitcoin Reserve Bill, citing it as “untested” for the state’s finances. Critics argue that traditional investment strategies may not be performing well, as Arizona’s pension funds rank 36th with only 76% funding. #Bitcoin #ArizonaVeto
