An effort to bring crypto into Arizona’s public pension system has hit a wall after Governor Katie Hobbs vetoed legislation that would have allowed the state to invest retirement savings in digital assets like Bitcoin.
Senate Bill 1025, which had passed both chambers of the state legislature, proposed including cryptocurrencies in the Arizona State Retirement System’s investment portfolio.
Supporters argued the move could diversify holdings and help hedge against inflation. However, Governor Hobbs rejected the proposal, warning that volatile, largely unregulated assets pose too much risk for public pensions.
In a letter explaining her decision, Hobbs emphasized the importance of maintaining stability in one of the country’s strongest retirement systems. She described crypto markets as “untested” and unsuitable for safeguarding public funds.
The veto effectively halts what could have been the first state-run Bitcoin reserve in the U.S. While other states like Wyoming and South Dakota have flirted with similar legislation, none have yet succeeded in pushing digital assets into their public finance frameworks.
A companion proposal, SB1373, which would allow up to 10% of Arizona’s rainy-day funds to be held in crypto, is still awaiting a final decision. For now, though, the broader trend of cautious state-level resistance to crypto integration continues.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/arizona-governor-shuts-down-bitcoin-pension-plan/