Arizona Governor Katie Hobbs Vetoes Two Digital Asset Bills That Would Have Allowed the State to Engage More Actively With Cryptocurrencies

Katie Hobbs, the Governor of Arizona, has rejected two digital asset bills that would have enabled the state to engage more actively with cryptocurrencies.

Key Notes

* Governor of Arizona, Katie Hobbs, has rejected two bills that would have allowed the state to engage more actively in cryptocurrencies.

* At the same time, Hobbs approved a measure to regulate the establishment of Bitcoin ATMs in the state.

* The governor explained that her decision to veto the bills was motivated by her desire to protect the state's general fund dollars.

* A new law also introduces consumer protection regulations for digital asset kiosk operators.

Gov. Katie Hobbs of Arizona has vetoed two bills that would have allowed the state to engage more actively in cryptocurrencies, even as she approved a measure to regulate the establishment of Bitcoin ATMs.

The governor explained that her decision to veto the bills was motivated by her desire to protect the state’s general fund dollars.

“I believe that we must be cautious and proceed with a focus on the best interests of the general fund in this emerging area of technology,” Hobbs stated in her veto message for Senate Bill 1373.

This initiative proposed the creation of a Digital Assets Strategic Reserve Fund, which would permit Arizona to retain cryptocurrency acquired through asset forfeitures or designated by lawmakers. However, Hobbs expressed her concern over the timing of the bill's passage.

"With the current volatility in cryptocurrency markets, I am not comfortable using general fund dollars to purchase crypto assets at this time," she added in her letter. "I have already signed legislation this session which allows the state to utilize cryptocurrency without placing general fund dollars at risk."

Earlier this year, the Arizona House of Representatives approved a bill that would have permitted state agencies to accept cryptocurrency payments for taxes, fees, and fines. The bill, House Bill 2387, also introduces new consumer protection regulations for digital asset kiosk operators.

The goal of these regulations, which are mandated by the bill, is to combat fraud and provide greater transparency.

Under the bill, operators will be required to display warnings about potential crypto scams in multiple languages, and customers must acknowledge that they understand these warnings before completing their transactions.

The new regulations also impose transaction limits for Bitcoin ATMs, capping daily transactions at $2,000 for new users and $10,500 for long-standing clients. Operators will be required to display contact numbers on their ATMs for customer support.

Recently, the UK Treasury Secretary refused the idea of creating a national digital asset reserve. They noted that it would be better to regulate crypto usage in the country.