Bitcoin maxis react as Florida withdraws BTC reserve bill after Arizona Governor’s veto

Florida and Arizona’s legislative moves reflect growing resistance to state-backed Bitcoin reserve initiatives, despite ongoing support from crypto advocacy groups.

Florida drops Bitcoin treasury bills after Arizona setback

Florida’s House Bill 487 and Senate Bill 550 were officially withdrawn from consideration on May 3. According to the Florida Senate website, both bills were “indefinitely postponed,” marking a setback for state-level Bitcoin reserve initiatives.

The legislative session adjourned on May 2 without advancing crypto reserve proposals, despite passing 230 other bills on issues like water fluoridation, park preservation, and school phone use.

Introduced in February, HB 487 and SB 550 aimed to authorize the state to allocate up to 10% of certain funds into Bitcoin.

The bills’ collapse places Florida alongside other states like Wyoming, Montana, Pennsylvania, and most recently Arizona, where similar cryptocurrency reserve initiatives have stalled. 

Arizona Governor vetoes Bitcoin reserve bill despite legislative progress

Just days before Florida’s withdrawal, Arizona’s Bitcoin legislation reached an advanced stage before facing a veto from Governor Katie Hobbs. 

On Sunday, Hobbs rejected House Bill 1025, which would have allowed the state to invest seized assets in Bitcoin. 

In her veto letter, Hobbs described digital assets as “untested investments,” effectively halting the bill’s progression.

The Digital Assets Strategic Reserve proposal had positioned Arizona as a potential first mover in Bitcoin-backed state reserves, as the bill garnered bipartisan support to invest up to 10% of the state’s Treasury valued at $32 billion as of December 2024. 

Bitcoin advocates push back, say states still have a path forward

Governor Hobbs’ veto of Arizona’s crypto reserve bill drew criticism from crypto lobby groups and Bitcoin maximalists, triggering intense debates across social media. 

Prominent Bitcoin enthusiasts criticized the recent setbacks in Florida and Arizona. On Monday, Dennis Porter, CEO of Satoshi Action Fund, responded to the Arizona veto by pointing out that the state still has "two more chance" to pass a Bitcoin reserve.

He cited House Bill 2749, which proposes a budget-neutral method using profits from unclaimed property, as the most viable.

Another active bill, SB 1373, would permit the Arizona Treasury to allocate up to digital assets seized by the state, though it has not yet come to a final vote. 

Prominent Bitcoin advocate and market analyst Anthony Pompliano also publicly criticized Governor Hobbs for what he viewed as an uninformed rejection of Bitcoin’s long-term investment potential. 

What’s next for state-backed Bitcoin treasuries?

With Florida and Arizona facing roadblocks, focus now turns to remaining bills still in progress across a shrinking number of US states. In Arizona, both HB 2749 and SB 1373 remain viable paths toward Bitcoin reserve legislation before the end of the legislative cycle.

At the national level, Trump’s crypto reserve proposal momentum has also slowed as multiple state-level proposals face legislative setbacks. 

Observers now await whether any legislature will pass and implement a Bitcoin reserve law in 2025. 

Until then, the Satoshi Action Fund and other Bitcoin advocacy groups are expected to increase lobbying efforts across major US states.