Arizona Governor Katie Hobbs Vetoes Two Crypto Bills, Approving One Focused on Consumer Protection at Kiosks

Arizona's latest attempt to integrate digital assets into its public finance system faced a mixed outcome this week.

Arizona Governor Katie Hobbs has vetoed two cryptocurrency bills that would have allowed the state to invest in digital assets and accept them for public payments. The move comes as several U.S. states are exploring ways to integrate crypto into their treasury operations.

One of the rejected bills, SB 1373, aimed to create a Digital Assets Strategic Reserve, managed by the State Treasurer, for limited investment and lending of seized or allocated crypto assets. The bill also included provisions for unclaimed digital assets, which would revert to the state after a three-year period of inactivity.

However, Governor Hobbs vetoed the bill, arguing that similar provisions had already been passed under HB 2749, which lets the state claim unclaimed crypto after three years.

“This bill is largely redundant as many of the provisions are already covered in HB 2749, which I have previously signed into law,” Governor Dobbs said in her veto message.

A second bill, SB 1024, would have enabled state agencies to accept cryptocurrencies such as Bitcoin and Ethereum for taxes and fees, paid in fiat currency. The bill, which had bipartisan support in both the House and Senate, was seen as a way to expand the state’s treasury operations and provide taxpayers with more payment options.

But Governor Hobbs vetoed the bill, arguing that the proposal didn’t adequately mitigate the financial risk to the state.

“While I appreciate the bipartisan interest in this bill and the intent to expand payment options for taxpayers, the bill does not adequately mitigate the financial risk to the state,” she said.

In her veto message, Governor Dobbs added that she was committed to exploring ways to integrate digital assets in a responsible manner.

“My administration is committed to exploring emerging technologies and integrating them into state government in a responsible manner that serves the best interest of all Arizonans,” she said.

Despite the vetoes, Arizona lawmakers are expected to continue debating the role of crypto in public finance in the coming year. Several other states, including Wyoming and Texas, have already enacted laws to facilitate the use of crypto in treasury operations.

In other news, Paxos-backed stablecoin USDG is expanding its global presence through a revenue-sharing model with key partners in new markets.

This strategy will see Paxos providing technical expertise and support to local partners, who in turn will handle local regulatory engagement and market development.

The initiative is set to launch in the fourth quarter of 2023, with the first partnerships set to be announced in the coming weeks.

“We are committed to providing the best blockchain and token economics solutions to our partners and to expanding the USDG ecosystem in a sustainable and compliant manner,” said Paxos CEO, Sara Niepovich.

The move comes as stablecoins are increasingly being used for cross-border payments and remittances, highlighting the potential for USDG to become a major player in the global payments ecosystem.

“We believe that this model will enable us to launch USDG in new markets quickly and efficiently, while ensuring that the token is being used in accordance with all applicable laws and regulations,” added Niepovich.

The initiative is expected to generate significant interest from financial institutions and technology companies in the respective markets.

This partnership strategy will play a key role in Paxos’s broader plans to expand the USDG ecosystem and make it the world’s leading stablecoin.

This initiative underscores the growing role of stablecoins in the modern financial landscape and Paxos’s dedication to facilitating the seamless integration of blockchain technology into the global economy.

The post Mixed Outcome for Arizona’s Latest Attempt to Integrate Digital Assets Faced a Mixed Outcome This Week appeared first on Chain Link.

The post Mixed Outcome for Arizona’s Latest Attempt to Integrate Digital Assets Faced a Mixed Outcome This Week appeared first on Chain Link.

The post Mixed Outcome for Arizona’s Latest Attempt to Integrate Digital Assets Faced a Mixed Outcome This Week appeared first on Chain Link.

.output: Arizona Governor Katie Hobbs has vetoed two cryptocurrency bills that would have allowed the state to invest in digital assets and accept them for public payments.

The move comes as several U.S. states are exploring ways to integrate crypto into their treasury systems. One of the rejected bills, SB 1373, aimed to create a Digital Assets Strategic Reserve, managed by the State Treasurer, for limited investment and lending of seized or allocated crypto assets. The bill also included provisions for unclaimed digital assets, which would revert to the state after a three-year period of inactivity.

However, Governor Hobbs vetoed the bill, arguing that similar provisions had already been passed under HB 2749, which lets the state claim unclaimed crypto after three years.

“This bill is largely redundant as many of the provisions are already covered in HB 2749, which I have previously signed into law,” Governor Dobbs said in her veto message.

A second bill, SB 1024, would have enabled