Arizona Governor Katie Hobbs has vetoed legislation that would have allowed the southern U.S. state to invest in Bitcoin (BTC) and create a strategic reserve of the cryptocurrency.
If adopted, the bill would have made Arizona the first U.S. state to adopt BTC as part of its financial reserves, and hopes were running high among crypto advocates. However, Governor Hobbs intervened to veto the legislation that would have allowed the state government to hold the largest cryptocurrency as part of its official reserves.
The legislation, known as “Senate Bill 1025,” proposed using seized funds to invest in Bitcoin and create a digital assets reserve managed by the state government. After passing the State House in a narrow 31–25 vote, the bill reached Hobbs’ desk, where it was vetoed, much to the disappointment of crypto enthusiasts.
Sound Investments
In a written statement, the governor said, “The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments. Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency.”
Crypto bulls continue to push for governments at all levels (municipal, state and federal) to adopt BTC or other cryptocurrencies and add them to their reserves. Lobbyists for the crypto industry continue to push for the U.S. Treasury Department at the federal level to adopt Bitcoin.
Crypto advocates have a vested interest in trying to get governments to adopt digital assets as it would lead to more buying and push prices higher. Bitcoin is currently trading at $94,100, up less than 1% on the year.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has declined 9.50% in the last 12 weeks.
