Arizona Governor Hobbs Blocks Bitcoin Reserve Bill in Ongoing Crypto Crackdown

Arizona Governor Katie Hobbs has vetoed yet another crypto-centric bill, reinforcing her administration’s cautious approach toward digital asset integration in state finances. The latest rejected proposal, House Bill 2324, sought to create a state-run Bitcoin reserve using cryptocurrencies seized from criminal activity.

In her veto message to House Speaker Steve Montenegro, Hobbs argued that the bill would “disincentivize local law enforcement from working with the state on digital asset forfeiture” by stripping local jurisdictions of seized crypto assets. The bill had narrowly cleared the Arizona House last month in a 34–22 vote after a failed attempt in May.

This marks Hobbs’ third strike against Bitcoin-related legislation in 2025 alone. She previously rejected two Senate bills that would have permitted state treasurers and retirement systems to allocate up to 10% of public funds into Bitcoin and allowed agencies to retain crypto obtained through seizures. Another veto in May also halted a bill proposing crypto payment options for government fees and taxes.

Citing persistent concerns over crypto’s instability, Hobbs defended her stance by pointing to “current volatility in cryptocurrency markets,” stating it poses too great a risk for public dollars. Political analysts suggest Hobbs’ position reflects a cautious fiscal image, wary of being perceived as reckless amid a market known for unpredictable drawdowns.

Despite the string of vetoes, Hobbs did greenlight House Bill 2749 earlier this year, allowing the state to retain unclaimed cryptocurrencies in their native form—signaling some room for digital asset accommodation in state policy.

While Arizona continues to walk a more conservative crypto path than peers like Texas and New Hampshire, experts believe the door remains open.