- Arizona halts its crypto reserve plans as Governor Hobbs vetoes Senate Bill 1025 over concerns about risky retirement fund investments.
- Despite state-level setbacks, Bitcoin remains stable above $96K, showing strong resilience amid tightening US regulatory pressure.
- While Arizona retreats from digital assets, North Carolina and federal policymakers push forward with pro-Bitcoin investment initiatives.
Arizona Governor Katie Hobbs vetoed a landmark bill that aimed to make the state the first to hold Bitcoin in its reserves. Senate Bill 1025, dubbed the Digital Assets Strategic Reserve bill, was officially struck down on Friday. The legislation would have allowed Arizona to invest seized funds in Bitcoin and create a digital asset reserve managed by state officials. Hobbs cited concerns over the volatility and untested nature of crypto assets, particularly regarding retirement funds. The decision follows a narrow 31-25 approval vote in the House and signals a halt to Arizona’s ambitious crypto investment plans.
Political Resistance Against Crypto-Led State Funds
Governor Hobbs issued a strong statement defending the state’s current investment approach. She emphasized that Arizona’s retirement system thrives on informed, risk-managed strategies. “Arizonans’ retirement funds are not the place for untested investments like virtual currency,” she stated. Furthermore, Hobbs warned she would veto any bill not supported by a bipartisan agreement on disability funding, adding political friction to the crypto conversation.
A companion bill, SB1373, still awaits a final vote. If passed, it would allow the state treasurer to allocate up to 10% of the rainy-day fund into digital assets. However, prospects remain uncertain following this latest veto. Similar crypto-related proposals have also stalled in other states, including Oklahoma, South Dakota, and Montana.
Market Holds Steady Amid Regulatory Setbacks
Despite the regulatory blow, Bitcoin maintains a firm footing above $96,000. The BTC/USDT pair on Binance recently traded at $96,253.49. This reflects a minor increase of 0.06%, showing resilience despite downward pressure post-CME Close. The data highlights minimal spread between buy and sell orders, suggesting balanced market sentiment.
Source: Daan Crypto Trades
Moreover, trading volume surged during the downturn but eased as prices stabilized. A key magnet zone sits at $97,022, which could attract short-term buyers. Technical indicators show reduced volatility, and the mid-timeframe outlook remains bullish. Additionally, the asset’s price range stayed within $95,450 to $98,600.
In contrast, North Carolina is advancing pro-crypto legislation. The state’s House recently passed the Digital Assets Investment Act, allowing up to 5% crypto allocation. Meanwhile, federal interest in Bitcoin continues to rise. Former President Trump recently signed an executive order proposing a Strategic Bitcoin Reserve and a digital stockpile.
