Arizona’s (Governor Katie Hobbs) Catastrophic Bitcoin Blunder
How Governor Katie Hobbs Fumbled the Opportunity of a Generation and Why Nobody Should Let Her Make Choices For Their Financial Future.
I’m a proud Arizona resident and business owner since 2015, so I can always move my life, portfolio, or strategy when incompetent leaders go too far, but I originally come from an East Coast family of public employees and teachers whose lifestyles and pensions are often less flexible. So when I see a governor like Katie Hobbs monumentally screw up the future of those public servants and the fiscal health of the institutions they rely on like she just did on Friday night, my blood boils.
And let me be clear: I’ve been a registered independent for over 20 years. I don’t carry water for any political party — I care about common sense, sound leadership, good ideas, and real solutions regardless of where they come from.
What Arizona has in Katie Hobbs is not a leader, but a partisan tool. She is the poster child for everything wrong with today’s partisanship-before-people Democratic Party. Hobbs is arguably the most partisan governor in America — possibly in the country’s history. That’s not hyperbole. In 2024 alone, she vetoed 185 bills — a staggering 20% of all legislation that reached her desk. The previous record? Just 58 vetoes. Hobbs didn’t just break the record — she obliterated it.
So, when Hobbs ignorantly called Bitcoin “untested,” yesterday as she vetoed the bill passed by both parties, let’s be clear: the one who has truly failed the test — the test of fiduciary responsibility, visionary leadership, and the humility to understand the historic moment handed to her — is Ms. Hobbs herself.
Let’s unpack this gross negligence and the once-in-a-generation opportunity she squandered for every Arizonan family and the public employees she leads.
At Least California’s Incompetence Comes with an Ocean View
In what will surely go down as one of the most economically illiterate moves in modern state history, Arizona Governor Katie Hobbs has just vetoed Senate Bill 1025 — legislation that would have made Arizona the first U.S. state with a strategic Bitcoin reserve.
This veto isn’t just a missed opportunity; it’s an epic blunder that will echo across generations, costing Arizona the chance to become the wealthiest state in the union.
Let’s be clear: this wasn’t some reckless crypto gamble. The bill capped investment at 10% of state-managed funds (about $3.14 billion), protected by fiduciary safeguards, on-chain auditability, and focused mainly on the world’s most secure digital asset — Bitcoin. Even more telling, the reserve would have been funded through seized crypto assets and legislative appropriations, not retirees’ savings. It was also completely bipartisan.
Yet Hobbs, clinging to out-of-date talking points about “untested investments,” shot it down despite Bitcoin’s 16-year track record, 2 trillion global market cap, and growing institutional and sovereign adoption.
Meanwhile, Arizona's fiscal ship is taking on water under Hobbs, despite mega-deals signed by major firms like TSMC to bring over $100B in infrastructure and advanced manufacturing jobs to the state.
After inheriting a $2.5 billion surplus from Governor Doug Ducey (R), Hobbs’ administration has torched it, delivering a $400 million deficit by January 2024 and facing an eye-watering $1.6 billion shortfall through 2025. This is almost a $4.1 billion swing in the opposite and fiscally irresponsible direction.
Instead of leveraging a generational asymmetric opportunity with the Strategic Bitcoin Reserve bill and the unique chance to be the first state (of the 28 that have similar bills proposed but not yet passed through their legislatures), to rebuild the surplus and diversify Arizona’s financial base, she followed the Democrat party line. She chose cowardice, paralysis, and political optics.
Arizona’s Bitcoin Opportunity Cost Table
Arizona could’ve owned 31,000 Bitcoin this week and just walked away from $27 billion in potential upside — enough to erase the deficit, overhaul infrastructure, fund schools, and protect pensions for generations.
Beyond Gains: Tax Revenue, Talent, and Innovation
Other states will now seize the first-mover advantage, with North Carolina likely now being in a position to be the first. As Bitcoin marches toward global mainstream adoption, states with reserves will attract:
Top tech talent and Bitcoin entrepreneurs
Massive tax windfalls from capital gains and business formation
Prestige as financial innovation hubs
Enhanced public service funding without tax hikes
Instead, Arizona’s Governor now broadcasts: We’re about party, not the will of the people.
Why Every Arizona Public Employee Should Be Furious
This veto wasn’t just a blown investment — it was a betrayal of all those from both sides of the aisle who had the vision and work ethic to get this historic bill to her desk. Hobbs shut the door on a plan that could have fortified pensions, secured retiree benefits, and unlocked generational prosperity, all under strict risk management. And for what? Nobody knows.
Teachers, police officers, firefighters, healthcare workers, and state employees should flood the Capitol on Monday morning to demand her resignation or a reversal of this blunder.
The veto crystallizes why Democrats are hemorrhaging independent, rational and moderate voters:
They claim to be pro-innovation but flinch at innovation’s edge.
They preach fiscal responsibility but squander budget surpluses in record time, and reject asymmetric, low-risk upside, while
They package incompetence, and party over people maneuvers like this in the language of caution while fear-mongering us all about how the orange man is gonna ruin the country and democracy.
This wasn’t just a political failure but a demonstration of complete financial illiteracy and incompetence. It is a failure of vision, courage, and leadership. Arizona had a chance to become the Singapore or Switzerland of the American West, combined with Taiwan. Instead, it’s now a cautionary tale of political cowardice.
Why Nobody Should Take Financial Advice from Governor Katie Hobbs
Before anyone defends Hobbs’ veto on “fiscal responsibility” grounds, let’s look at her record managing Arizona’s finances in just two years, and why nobody should trust her economic judgment.
Hobbs inherited a $2.5 billion surplus from Governor Doug Ducey (2023)
Thanks to Ducey’s disciplined tax cuts, school voucher reforms, and business-friendly policies, Hobbs entered office with Arizona's strongest fiscal position in years.Hobbs turned surplus into deficit in less than two years
By January 2024, the surplus was gone, replaced by a $400 million deficit. Fast-forward to mid-2024, and the projected deficit exploded to $1.6 billion for fiscal years 2024–2025 — a $4.1 billion swing in less than 24 months.What caused the collapse?
Post-2021 tax revenue shortfalls.
Bloated entitlement expansions without offsets.
Reckless budget hikes across the government.
Failure to contain runaway education voucher and health program costs.
Bipartisan budget band-aids
Hobbs’ temporary fixes have done little to shore up long-term fiscal health. Independent analysts now flag Arizona as a state at risk of downgraded credit ratings, and she could have reversed that this weekend, but instead poured gas on that fire of unsustainability.TSMC as a contrast
While Arizona thrives on innovation through companies like TSMC, Hobbs’ administration retreats into risk aversion, blocking Arizona’s shot at national financial leadership.
In short, Hobbs has zero credibility lecturing anyone on investment risk. She squandered a once-in-a-generation surplus and has torched Arizona’s future balance sheet.
Call to Action: Don’t Wait for Your State - Build Your Own Strategic Reserve
Grow your financial literacy and knowledge at Bitcoin 2025 and tune in at a minimum to the livestreams from Las Vegas if you can’t attend in person.
While Arizona’s Governor fumbled the opportunity of a generation, everyday Americans don’t have to sit on the sidelines because Bitcoin is permissionless. You don’t need anyone to allow you to own it.
You can build your intellectual, financial, and strategic Bitcoin reserve by equipping yourself with the knowledge, networks, and tools to define the next era of wealth.
The perfect starting point is Bitcoin 2025, the world’s most influential Bitcoin conference, which will take place May 27–29, 2025, in Las Vegas.
Bitcoin 2025 just dropped its first preliminary agenda, and it’s stacked with pioneers and visionaries:
Ross Ulbricht, Freedom Fighter
Donald Trump Jr., Political Commentator & Entrepreneur
Eric Trump, Executive VP, The Trump Organization
David Sacks, A.I. & Crypto Czar, The White House
Sen. Cynthia Lummis, the U.S. Senate’s top Bitcoin advocate
Bo Hines, Executive Director, President’s Council of Advisors for Digital Assets
Michael Saylor, Executive Chairman, MicroStrategy
Vlad Tenev, Chairman & CEO, Robinhood
Jack Mallers, CEO, Strike
Cameron & Tyler Winklevoss, Founders, Gemini
Simon Gerovich, President, Metaplanet Inc.
With over 30,000+ attendees expected, Bitcoin 2025 is not just a conference — it’s a global gathering of those who believe in freedom, innovation, and Bitcoin’s future.
Whether you’re an investor, entrepreneur, technologist, or citizen looking to opt out of broken systems and position yourself for the next great wave of wealth creation, this event will give you insights, connections, and strategies to protect and grow your assets.
This isn’t about gambling — it’s about sovereignty.
When political leaders fail us, citizens can still win. You can become your own reserve manager, your family’s hedge fund, your community’s early adopter.
Yours in health and wealth,
~Chris J Snook
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Sources
Cointelegraph — Arizona governor vetoes bill to make Bitcoin part of state reserves
https://cointelegraph.com/news/arizona-bitcoin-reserve-bill-vetoed-by-governorArizona Legislature — SB1025 House Bill Summary
https://www.azleg.gov/legtext/57leg/1R/summary/H.SB1025_022725_COM.DOCX.htmCoinDesk — Arizona Governor Calls Crypto an ‘Untested Investment’
https://www.coindesk.com/policy/2025/05/03/arizona-governor-calls-crypto-an-untested-investment-vetoes-bitcoin-reserve-billFXStreet — Arizona state approves first ever US Bitcoin reserve
https://www.fxstreet.com/cryptocurrencies/news/arizona-state-approves-first-ever-us-bitcoin-reserve-set-to-invest-10-of-315b-state-assets-202504282343AInvest — Arizona Moves to Allocate 10% of Funds to Bitcoin
https://www.ainvest.com/news/arizona-moves-allocate-10-funds-bitcoin-2504/AInvest — Arizona Passes Bills to Invest 10% of Public Funds in Bitcoin
https://www.ainvest.com/news/arizona-passes-bills-invest-10-public-funds-bitcoin-2504/Governor Doug Ducey — Budget and fiscal legacy report
https://azgovernor.gov/sites/default/files/regaining_ownership_of_the_state_capitol.pdfKJZZ — How the AZ budget went from a $2.5 billion surplus to a large deficit
https://kjzz.org/content/1867384/how-az-budget-went-25-billion-surplus-large-deficitAZ Economic Center — From Flat Tax to Funding Dilemmas: Arizona’s Budget Struggles
https://azeconcenter.org/1101-2/AP News — Arizona lawmakers pass budget closing $1.4 billion deficit
https://apnews.com/article/arizona-budget-deficit-cuts-hobbs-legislature-f84e9144310146ceb0f58c742af53973DL News — First-in-the-US Bitcoin reserve blocked by Arizona governor’s veto
https://www.dlnews.com/articles/regulation/first-in-the-us-bitcoin-reserve-blocked-by-governors-veto/Crypto Briefing — Arizona approves first state Bitcoin reserve bills
https://cryptobriefing.com/arizona-bitcoin-reserve-bill-approval/CryptoTicker — Bitcoin Bill Rejected: Arizona Governor Halts Crypto Pension Strategy
https://cryptoticker.io/en/arizona-bitcoin-reserve-rejected-2025/Mitrade — Arizona Bitcoin Reserve Bill Fails as Governor Vetoes Proposal
https://www.mitrade.com/insights/news/live-news/article-3-798577-20250503ZyCrypto — Setback For Crypto Advocates As Arizona Governor Vetoes Bill
https://zycrypto.com/setback-for-crypto-advocates-as-arizona-governor-vetoes-bill-to-put-public-reserves-into-bitcoin/CryptoSlate — Arizona legislature passes Bitcoin reserve bill, Governor approval pending
https://cryptoslate.com/arizona-legislature-passes-bitcoin-reserve-bill-governor-approval-pending/BillTrack50 — Arizona SB1025 Bill Tracker
https://www.billtrack50.com/billdetail/1759986Crowdfund Insider — Arizona Takes Significant Step Toward Potential Bitcoin Reserve
https://www.crowdfundinsider.com/2025/04/239016-arizona-takes-significant-step-toward-potential-bitcoin-btc-reserve-awaits-governors-decision/Heritage Foundation — One State’s Budget Dispels Big Lie About School Choice
https://www.heritage.org/education/commentary/one-states-budget-dispels-big-lie-about-school-choiceABC15 — Arizona faces $1B deficit as the state Legislature opens the 2024 session
https://www.abc15.com/news/state/arizona-faces-a-1-billion-deficit-as-the-state-legislature-opens-the-2024-sessionCommon Sense Institute — The 2025 Arizona Budget Then and Now
https://www.commonsenseinstituteus.org/arizona/research/state-budget/2025-arizona-budget-then-and-nowArizona Center for Economic Progress — State Budget 101
https://azeconcenter.org/state-budget-101/KJZZ — After big cuts last year, Hobbs seeks $1 billion spending bump in new budget
https://www.kjzz.org/politics/2025-01-17/after-big-cuts-last-year-hobbs-seeks-1-billion-spending-bump-in-new-arizona-budget
Here’s the link updated press release from an hour ago https://x.com/bitcoinmagazine/status/1920280492781322280?s=46
Amazing how New Hampshire brought the heat to Arizona and 2nd time around Katie Hobbs couldn’t say no