Hobbs Pulls the Plug on Arizona’s Bitcoin Ambitions
On May 2, Arizona Governor Katie Hobbs issued a veto on the Arizona Strategic Bitcoin Reserve Act, a bill that would have allowed the state to invest in Bitcoin using seized funds and create a reserve under state management. Hobbs cited "concerns over risk" as the reason for blocking the legislation. The proposed law, had it passed, would have made Arizona the first U.S. state to officially hold Bitcoin in its treasury, marking a major milestone for state-level crypto adoption. The veto quickly unleashed a storm of criticism.
Crypto Community Unleashes Fury
Bitcoin believers and pro-crypto lawmakers didn’t hold back. Casa co-founder Jameson Lopp bluntly stated, “This will age poorly.”
Meanwhile, Bitcoin evangelist Anthony Pompliano blasted Hobbs for lacking vision: “If she can’t outperform Bitcoin, she must buy it.” His take echoed a common sentiment that politicians should not be making speculative investment calls when Bitcoin’s performance has historically outpaced most traditional assets.
Senator Wendy Rogers, who co-sponsored the bill with Rep. Jeff Weninger, promised to reintroduce the proposal: “Politicians don’t understand that Bitcoin doesn’t need Arizona. Arizona needs Bitcoin,” she declared. She also reminded the public that Arizona’s state retirement system already owns shares in MicroStrategy (MSTR) — a company heavily tied to Bitcoin.
Even crypto attorney Andrew Gordon weighed in, saying, “We need more elected officials who understand that Bitcoin and crypto are the future.”
Support for the Veto – and the Wider Bitcoin Picture
On the flip side, longtime crypto skeptic Peter Schiff supported Hobbs, asserting that public funds should not be used to speculate in cryptocurrency markets.
While Arizona’s effort failed, interest in state-level crypto exposure isn’t dead. Similar proposals have been floated — and struck down — in Wyoming, Oklahoma, Montana, and South Dakota.
At the federal level, adoption seems unlikely. BitMEX co-founder Arthur Hayes noted that despite the U.S. government holding nearly 200,000 BTC, it is unlikely to proactively build a strategic Bitcoin reserve due to cultural inertia and ballooning national debt.
Strategy (Formerly MicroStrategy) Goes All-In on Bitcoin
Meanwhile, the private sector continues to double down. Strategy Inc., led by Michael Saylor, has doubled its capital-raising target to $84 billion to purchase more Bitcoin. This includes another $21 billion equity sale and a debt issuance increase to $42 billion. Despite the market’s ups and downs, public companies increased their Bitcoin holdings by 16.1% in Q1 2025, reinforcing a trend of continued institutional confidence in the crypto space.
