Governor Katie Hobbs’ decision to veto Arizona’s Strategic Bitcoin Reserve Act this week wasn’t just political — it was shortsighted.
By rejecting legislation that would’ve made Arizona the first U.S. state to hold Bitcoin as part of its financial reserves, Hobbs may have closed the door on an innovation opportunity that could redefine state-level fiscal policy.
Her reasoning? Risk. But Bitcoin’s decade-plus history and the growing list of institutional holders suggest that it’s riskier to ignore it.
Crypto Doesn’t Need Arizona, but Arizona Might Need Crypto
The backlash was immediate and forceful. Casa co-founder Jameson Lopp declared, “This will age poorly.” Bitcoin bull Anthony Pompliano slammed the veto as “ignorance,” while Arizona Senator Wendy Rogers vowed to bring the bill back next session.
They’re not wrong. As Senator Rogers pointed out, Arizona’s retirement fund already holds exposure to Bitcoin — indirectly — via its MicroStrategy stock. If the state is already benefiting from Bitcoin’s performance, why draw a line in the sand?
This is about more than a reserve fund. It’s about vision. Arizona had a chance to lead and instead chose to follow.
The Fed Won’t Buy Bitcoin, But Corporations Are All In
Ironically, the U.S. government already holds nearly 200,000 BTC, but according to Arthur Hayes, it’s unlikely to build out a formal Bitcoin strategy. The bureaucracy is too slow, and the optics too risky.
That’s not stopping corporations. Just last week, Michael Saylor’s MicroStrategy doubled its stock sale plan to $84 billion — all to buy more Bitcoin. The company also increased its debt raise, bringing its 2025 acquisition firepower to a new peak.
This isn’t hype. It’s capital allocation. In Q1 alone, public companies increased their Bitcoin holdings by 16.1%.
A Missed Moment for Leadership
Governor Hobbs’ veto may have played well with traditionalists like Peter Schiff, who praised the decision. But history rarely remembers those who played it safe during technological shifts. It remembers the risk-takers.
Bitcoin doesn’t need Arizona. But as the U.S. moves deeper into digital infrastructure, financial decentralization, and programmable money, states that embrace Bitcoin early could reap significant rewards — not just in returns, but in relevance.
If Arizona wants to be part of that future, it’ll need more than regret. It’ll need action.
