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Katie Hobbs, the Democratic Governor of Arizona, blocked a bill that would have allowed public funds in the state to invest up to 10% of their capital in virtual currencies.
Several other states are weighing similar bitcoin reserve legislation, though none have yet been signed into law.

Arizona Governor Katie Hobbs has blocked a bill passed recently by the state's legislature that would have allowed the state's treasurer and retirement systems to invest up to 10% of their funds in virtual currencies such as bitcoin.

"The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments," Hobbs, a Democrat, wrote in a letter explaining her veto. "Arizonans' retirement funds are not the place for the state to try untested investments like virtual currency."

The bill was co-sponsored by two Republican State Legislature members and passed the Republican-majority state Senate and House of Representatives on April 26. Hobbs previously said she would not pass any new legislation until the state legislature passes a bipartisan funding solution that protects health care for Arizonans with disabilities.

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The veto sparked criticism from prominent figures in the bitcoin community on X. "Impeach Katie Hobbs, she just screwed over Arizona," Bitcoin
BTC -0.45%
Magazine CEO David Bailey wrote.

State legislatures in a number of states, including Iowa, Missouri, and Texas, are weighing their own bitcoin strategic reserve bills, though none have been signed into law as of yet.