Arizona Governor Katie Hobbs has rejected Senate Bill 1025, which aimed to establish a Bitcoin reserve in the state. This marks the first time a US governor has turned down a state-backed Bitcoin reserve initiative, despite interest in such measures in multiple states.

The decision was made on May 2 and highlights Hobbs' focus on ensuring that the Arizona State Retirement System (ASRS) maintains stable and well-researched investments. She expressed concerns about the untested nature of virtual currencies and their suitability for Arizona residents' retirement savings.

Governor Hobbs' opposition to the bill aligns with the Democratic Party's cautious stance on integrating cryptocurrencies into state financial systems. This move comes after Arizona's legislature passed the SBR bill with bipartisan support, making it the first state to do so.

Although Senate Bill 1025 was vetoed, another digital asset-related proposal, Senate Bill 1373, remains on the table. This bill seeks to authorize Arizona to hold cryptocurrencies from legal seizures and lend them out to generate income, but its fate is uncertain following Hobbs' rejection of SB 1025.

Arizona now joins other states like Oklahoma, Montana, North Dakota, and Wyoming, where efforts to establish Bitcoin reserves have faced obstacles.

In contrast, New Hampshire is making progress with its SBR proposal advancing through committee review. On the national level, Senator Cynthia Lummis is advocating for the BITCOIN Act, supported by President Donald Trump, to enable the US to acquire up to 1 million BTC over five years. This initiative aims to strengthen US fiscal policy and enhance the country's position in global financial innovation.