Arizona Governor Katie Hobbs on Monday vetoed two cryptocurrency-related bills—SB1373 and SB1024—while signing into law a separate measure regulating Bitcoin ATMs across the state.
Vetoed: Crypto Reserve Fund and Payments Bill
Arizona Governor Katie Hobbs on Monday vetoed two cryptocurrency-related bills—SB1373 and SB1024—while signing into law a separate measure that regulates Bitcoin ATMs throughout the state.
SB1373, introduced in February, aimed to establish a Digital Assets Strategic Reserve Fund, which would have allowed the state to manage and invest in digital assets obtained through seizures or legislative appropriations. The proposal would have permitted the state treasurer to invest up to 10% of the fund’s deposits annually.
In her veto message to Senate President Warren Petersen, Hobbs cited the volatility of cryptocurrency markets as a primary concern. She also referenced the earlier passage of HB2749, a budget-neutral bill she signed on May 7, which enables the state to create a reserve for digital assets obtained via airdrops, staking rewards, and interest—without putting taxpayer money at risk.
Dennis Porter, CEO of the Satoshi Action Fund, previously stated that Hobbs favored HB2749 over other crypto proposals due to its fiscal neutrality.
Hobbs also vetoed SB1024, which would have allowed state agencies to accept cryptocurrency payments for taxes, fines, fees, rent, and penalties. In her veto message, she acknowledged that the bill included risk mitigation measures, but emphasized that it still introduced too much financial uncertainty.
These actions follow her earlier veto of SB1025, which proposed allowing up to 10% of state treasury and pension funds to be invested in crypto assets.
Approved: Consumer Protections for Bitcoin ATMs
Despite rejecting several crypto investment proposals, Hobbs signed HB2387, a measure that establishes consumer protection regulations for cryptocurrency kiosks (Bitcoin ATMs) across Arizona.
Under the new law, operators must:
- Provide fraud warnings and detailed transaction receipts
- Offer 24/7 customer support
- Impose daily limits of $2,000 for new users and $10,500 for existing users
- Use blockchain analytics tools to block transactions involving known scam wallets
HB2387 is designed to reduce fraud and enhance consumer safety as cryptocurrency kiosks continue to expand throughout the state.
