In her veto letter, Governor Hobbs explained that the bill could discourage local law enforcement from collaborating with the state on digital asset forfeitures. She furthered that the legislation would hinder law enforcement cooperation by removing seized assets from local jurisdictions.
However, despite the recent legislative support, Governor Hobbs declined to sign it into law, marking the third time she has vetoed a digital asset reserve bill this session.
Governor Hobbs’ decision is consistent with her and the Democratic Party’s broader approach to crypto regulation.
While she has resisted attempts to position the state as a hub for digital assets, she has supported targeted measures aimed at oversight and consumer protection.
Her approach mirrors a broader trend among Democratic party members who have adopted a more conservative position on crypto.
