Arizona Governor Katie Hobbs vetoes two cryptocurrency bills aimed at expanding the state's involvement in digital assets

On May 12, Hobbs rejected Senate Bill 1373, which sought to establish a Digital Assets Strategic Reserve Fund. The fund would have allowed Arizona to hold crypto assets obtained through seizures or legislative allocations.

Arizona Governor Katie Hobbs has vetoed two key cryptocurrency bills that aimed to expand the state’s involvement in digital assets. However, she approved a measure introducing strict regulatory provisions for Bitcoin ATMs.

Hobbs rejected Senate Bill 1373, which proposed establishing a Digital Assets Strategic Reserve Fund. The fund would have permitted Arizona to hold crypto assets acquired through seizures or legislative allocations.

“The current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars,” Hobbs said in her veto letter on Friday.

“I have already signed legislation this session which allows the state to utilize cryptocurrency without placing general fund dollars at risk,” she added.

That decision follows her rejection of Senate Bill 1025 — the more comprehensive “Arizona Strategic Bitcoin Reserve Act” — on May 3. It would have authorized up to 10% of the state’s treasury and retirement funds to be invested in Bitcoin and other digital assets.

According to data from bitcoinlaws.io, 26 U.S. states have introduced strategic crypto reserve bills, with 18 actively in place.

Hobbs also vetoed Senate Bill 1024, which would have permitted state agencies to accept cryptocurrency payments for taxes, fines and fees via approved service providers.

Although the proposal aimed to mitigate the state’s exposure to cryptocurrency price volatility, Hobbs said it posed “too much risk.”

Hobbs approves Bitcoin ATM bill

Meanwhile, on Friday, Hobbs signed House Bill 2387, which introduces new consumer protection rules for cryptocurrency kiosk (ATM) operators.

The bill mandates that kiosks display clear, multilingual warnings about common crypto scams and require users to acknowledge these risks before completing transactions. Kiosk operators must provide detailed receipts with transaction data, contact information, fees and refund policies.

The bill also caps transactions at $2,000 per day for new customers and $10,500 per day for returning users after 10 days. Kiosk providers must offer 24/7 toll-free customer service and post the number visibly on each machine.

If a new user is tricked into sending crypto under false pretenses and reports it with proof within 30 days, they are entitled to a full refund, including fees.

According to CoinATMRadar, there are currently 20 active Bitcoin ATMs in Arizona.

Hobbs has now signed 246 bills and rejected 77 since taking office in January.

Earlier this week, she signed House Bill 2749, adjusting the state’s unclaimed property laws to include digital assets.

The legislation permits the state to retain unclaimed cryptocurrencies in their original form instead of liquidating them into fiat currency.