Arizona Governor Katie Hobbs vetoed Senate Bill 1025, which would have permitted state treasurers and public retirement systems to invest up to 10% of state funds in Bitcoin and other cryptocurrencies. In her letter to Senate President Warren Petersen, Hobbs emphasized the strength of Arizona's retirement system, attributing it to well-informed investments, and stated that retirement funds should not engage with untested assets like cryptocurrencies. This decision marks Arizona as the sixth U.S. state to reject a Bitcoin reserve proposal, amidst 19 other states considering similar legislation. Alongside SB1025, the legislature passed SB1373, a companion bill establishing a 'Digital Assets Strategic Reserve Fund' that focuses on managing digital assets acquired through legal means but does not authorize the investment of public funds. The fate of SB1373 remains uncertain as it awaits Hobbs's decision, which may indicate the state's broader approach to cryptocurrency regulation for the future.

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