Arizona Governor Katie Hobbs has vetoed two major cryptocurrency bills that would have allowed the state to expand its involvement in digital assets. The vetoed Senate Bill 1373 intended to establish a Digital Assets Strategic Reserve Fund, enabling Arizona to hold crypto obtained via seizures or legislative allocations, while Senate Bill 1025 would have authorized up to 10% of the state's treasury and retirement funds to be invested in Bitcoin and other digital assets. Governor Hobbs cited concerns over volatility and risk to public funds as reasons for her decisions.
At the same time, Hobbs approved House Bill 2387, introducing stricter regulations for Bitcoin ATM operators in the state. The new law mandates consumer protection measures, including clear scam warnings in multiple languages, required user acknowledgments, detailed transaction receipts, and capped daily transaction amounts for new and returning customers. Operators are also required to provide 24/7 customer support and must refund new users for fraudulent transactions reported within 30 days.
While the vetoes prevent Arizona’s public money from being invested directly into cryptocurrencies, new measures on Bitcoin ATMs aim to combat fraud and increase transparency for consumers.