Arizona Governor Katie Hobbs has made a decisive move on the state’s approach to digital assets, vetoing multiple cryptocurrency-friendly bills while signing a strict regulatory measure for Bitcoin ATM operations into law.
On May 12, Hobbs rejected Senate Bill 1373, which proposed the creation of a Digital Assets Strategic Reserve Fund. The initiative would have enabled the state to hold cryptocurrencies seized during investigations or allocated through legislative action. In her veto letter, Hobbs cited concerns about the volatility of digital assets, stating,
“Current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars.”
She added that previously signed legislation already permits the use of crypto in state operations without risking public funds.
This marks her second major veto of a digital asset proposal this month. On May 3, Hobbs blocked Senate Bill 1025 — the “Arizona Strategic Bitcoin Reserve Act.” The bill aimed to authorize up to 10% of Arizona’s treasury and retirement funds to be invested in Bitcoin and other digital currencies, a bold move that ultimately failed to secure the governor’s approval.
A third crypto-focused proposal, Senate Bill 1024, which would have allowed state agencies to accept cryptocurrency payments for taxes, fines, and fees, was also struck down. Hobbs said the bill, while attempting to insulate the state from market swings, still introduced “too much risk.”
Despite her pushback against these measures, Hobbs did approve one significant piece of crypto legislation on May 12 — House Bill 2387. The newly signed law introduces rigorous consumer protection standards for cryptocurrency kiosks (known as Bitcoin ATMs) to curb fraud and enhance user transparency.
Governor Hobbs signed House Bill 2749 on May 7, a less controversial crypto-related measure that updates Arizona’s unclaimed property laws. The bill allows the state to retain unclaimed digital assets like cryptocurrencies in their original form rather than converting them into fiat currency.
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