Arizona Governor Vetoes Two Crypto Bills, Signs Legislation to Tackle Bitcoin ATM Fraud

Highlights:

• Arizona Governor vetoes crypto bills SB1373 and SB1024, citing volatile market risks.
• Hobbs signs House Bill 2387 to safeguard users against crypto ATM fraud.
• Governor favors a cautious approach with HB2749 to manage digital assets.

Arizona Governor Katie Hobbs vetoed two cryptocurrency bills Senate Bill 1024 (SB1024) and Senate Bill 1373 (SB1373) on Monday. She cited concerns about the risks of connecting state funds and agencies to the “volatile” cryptocurrency market.

SB1373, introduced in February, aimed to create a Digital Assets Strategic Reserve Fund using crypto assets from seizures or legislative funding. The bill outlined guidelines for securely holding, investing, and lending these digital assets. Another vetoed bill, Senate Bill 1024, sought to allow crypto payments for state taxes and fees.

In her veto message, Hobbs said:

“Today, I vetoed Senate Bill 1024. While this bill would allow state agencies to enter into agreements to protect the state from risks associated with cryptocurrency, legislators on both sides of the aisle acknowledged it still leaves the door open for too much risk.”

Hobbs Takes Cautious Path on Crypto Legislation

In her veto letter to Senate President Warren Petersen, Hobbs said that due to the “current volatility in cryptocurrency markets,” using “general fund dollars” for crypto is not wise. She also pointed out that earlier in the session, she approved laws enabling the state to oversee digital assets while safeguarding taxpayer funds. The legislation she referenced is House Bill 2749 (HB2749).

On May 7 Hobbs signed HB2749 into law, allowing the state to hold unclaimed cryptocurrency and create a Reserve Fund. Digital assets will be considered abandoned after three years of inactivity, and they must be transferred to the Department of Revenue. The state can use these assets to earn staking rewards and collect airdrops.

🇺🇸 Arizona Update:

HB 2749 has been signed into law, technically creating AZ's first crypto reserve.

It doesn't allow investment, but moves unclaimed assets, airdrops, and staking rewards into a reserve.

IMPORTANT: Shows Gov. Hobbs is willing to enact pro-crypto legislation pic.twitter.com/BeTRdD8GlD

— Bitcoin Laws (@Bitcoin_Laws) May 8, 2025

So, while Hobbs hasn’t fully ruled out digital assets, she is taking a cautious approach with this new legislation. Dennis Porter, CEO of the Satoshi Action Fund, said that Hobbs preferred HB2749 over other crypto bills because it doesn’t affect the state’s budget.

Before that, on May 3, Hobbs rejected Senate Bill 1025, called the “Arizona Strategic Bitcoin Reserve Act.” It was a bigger plan that would have allowed the state to invest up to 10% of its treasury and retirement funds in Bitcoin and other cryptocurrencies.

JUST IN: 🇺🇲 ARIZONA Governor Katie Hobbs has VETOED the State's Strategic Bitcoin Reserve Bill.

"Arizonan's retirement funds are not the place for the state to try untested investments like virtual currency." pic.twitter.com/0Yhded9f7B

— Fiat Archive (@fiatarchive) May 3, 2025

Governor Signs Law to Regulate Bitcoin ATMs in Arizona

On May 12, Hobbs approved House Bill 2387. This new law sets rules to protect people using cryptocurrency kiosks (ATMs), aiming to prevent fraud and make things clearer for users. The bill requires kiosks to show clear, multi-language warnings about common crypto scams and make users confirm they understand the risks before finishing transactions. Operators must also give detailed receipts with transaction info, contact details, fees, and refund policies.

The bill imposes transaction limits of $2,000 per day for new users and $10,500 per day for returning users after 10 days. Kiosk operators are required to provide 24/7 toll-free customer support and prominently display the contact number on each machine. It also ensures that new users who are scammed and provide proof within 30 days are entitled to a full refund, including fees. As per CoinATMRadar data, the state currently has 20 Bitcoin ATMs in operation.