Arizona Governor Katie Hobbs Has Vetoed Two Major Crypto Bills That Would Have Seen the State Hold Bitcoin and Ethereum

Governor Hobbs vetoed Senate Bill 1373. The bill would have seen Arizona hold cryptos like Bitcoin and Ethereum and establish a digital assets strategic reserve fund.

Arizona Governor Katie Hobbs has vetoed two major crypto-focused bills that would have seen the state increase its participation in the crypto market.

Earlier this month, Governor Hobbs rejected Senate Bill 1025, also known as the Arizona Strategic Bitcoin Reserve Act. The bill would have seen Arizona invest up to 10% of its savings and retirement fund in Bitcoin. However, Hobbs rejected the bill, adding that the state’s interest in crypto should not translate to risky ventures with public funds.

“This bill would create a digital assets strategic reserve fund, allowing the state to invest in cryptocurrencies such as Bitcoin and Ethereum and to engage in other risky digital asset activities,” said Governor Hobbs.

“Despite the enthusiasm for cryptocurrencies among some members of the legislature, I am focused on keeping Arizona’s finances stable and making smart investments that will benefit all Arizonans in the long term.”

The governor also vetoed Senate Bill 1373, which would have seen Arizona take smaller crypto holdings and create a digital assets strategic reserve fund. In her veto message, Governor Hobbs said the bill’s provisions would have introduced an unnecessary level of risk into the state’s portfolio.

“Legislators on both sides of the aisle acknowledged that while this bill would allow state agencies to enter into agreements to protect the state from risks associated with cryptocurrency, it still leaves the door open for too much risk,” said Governor Hobbs.

“I am returning this bill without my signature.”

Hobbs Signs Crypto ATM Bill

However, Governor had signed House Bill 2387. The new law is aimed at tightening consumer protection around cryptocurrency ATMs in the state.

The legislation introduces several safety requirements designed to reduce fraud and increase transparency for users of Bitcoin kiosks.

Crypto ATM operators must now display clear warnings about common cryptocurrency scams in multiple languages. Before completing any transaction, users are required to acknowledge these warnings, confirming that they understand the risks involved.

Receipts must now include full transaction details, such as fees and refund policies. The new law also stipulates that crypto ATM operators must provide round-the-clock, toll-free customer service and make this contact information visible on the machines themselves.

Moreover, the legislation places strict transaction limits. New customers can only send up to $2,000 per day through the machines, with a higher daily cap of $10,500 allowed after 10 days of usage.