Arizona governor vetoes bills on crypto reserve
Arizona governor vetoes crypto reserve bill over volatility concerns.
Arizona Governor Katie Hobbs has vetoed two key Senate bills that would have allowed the state to invest in and accept cryptocurrency, citing volatility and financial risk as primary concerns.
Her decisions position Arizona among a growing number of states rejecting digital asset integration in public sector finances, reports Cryptopolitan.
Senate Bill 1373, which proposed a Digital Assets Strategic Reserve Fund to manage crypto seized through legal proceedings or legislative appropriations, was among the vetoed measures. Hobbs called crypto markets “too volatile” for taxpayer-backed general fund dollars in her letter to Senate President Warren Petersen. She also rejected Senate Bill 1025, which aimed to invest up to 10% of Arizona’s treasury surplus and retirement fund assets into Bitcoin and other digital currencies.
Crypto payments for state fees also blocked
The governor also halted Senate Bill 1024, which would have allowed Arizona state agencies to accept crypto payments for taxes, fines, and fees. Despite provisions requiring partnerships with vetted service providers, Hobbs said the proposal posed “too much exposure to financial instability.” All three vetoes reflect Hobbs’ cautious approach to using digital assets in state operations.
Arizona joins at least nine other states in formally blocking efforts to create state-level crypto reserves, according to Bitcoin Laws data.
Fraud prevention through ATM regulations gets green light
While rejecting broader crypto integration, Hobbs signed House Bill 2387, which regulates cryptocurrency kiosks and ATMs. The law requires operators to display fraud warnings in multiple languages and include wallet addresses and transaction hashes on printed receipts. It also mandates AML compliance and recordkeeping to help law enforcement combat crypto scams.
Separately, Hobbs recently approved House Bill 2749, allowing Arizona to hold unclaimed digital assets in their original crypto form rather than converting them into fiat.
Other states move to protect consumers
In Louisiana, AARP is backing a proposed law to protect seniors from crypto-related fraud. House Bill 483 would cap crypto ATM transactions at $3,000 per day and impose a 72-hour “cooling-off” delay. AARP Louisiana director Denise Bottcher emphasized the urgency of regulating fast-moving crypto technologies to prevent exploitation of vulnerable users.
Recently we wrote that UFC icon Conor McGregor is advocating for Ireland to establish a Bitcoin strategic reserve, aligning with growing interest in state-held crypto assets worldwide.
