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
SB1373, introduced in February, aimed to create a Digital Assets Strategic Reserve Fund, allowing the state to manage and invest in digital assets acquired 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 pointed to the earlier passage of HB2749, a budget-neutral law she signed on May 7, which allows the state to create a reserve for digital assets obtained via airdrops, staking rewards, and interest, without risking taxpayer money.
Dennis Porter, CEO of the Satoshi Action Fund, previously noted that Hobbs preferred HB2749 over other crypto proposals due to its fiscal neutrality.
Hobbs also vetoed SB1024, which would have allowed state agencies to accept cryptocurrency as payment for taxes, fines, fees, rent, and penalties. In her veto message, she acknowledged the bill included risk mitigation measures but maintained that it still posed too much financial uncertainty.
These actions follow a prior 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 bills, Hobbs signed HB2387, a measure establishing consumer protection rules for cryptocurrency kiosks (Bitcoin ATMs) in 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 ones
Use blockchain analytics tools to block transactions involving known scam wallets
HB2387 aims to curb fraud and improve consumer safety as crypto kiosks become more widespread in the state.
