Arizona Governor Vetoes Crypto Bills, Tightens Bitcoin ATM Regulations
Arizona Governor Katie Hobbs recently vetoed two cryptocurrency bills, rejecting proposals to establish a digital asset reserve fund and allow state agencies to accept crypto payments. Simultaneously, she signed a bill strengthening regulations for Bitcoin ATMs in the state.
The vetoed Senate Bill 1373 aimed to create a Digital Assets Strategic Reserve Fund, allowing Arizona to hold crypto acquired through seizures or allocations. Governor Hobbs cited cryptocurrency market volatility as the primary reason for her rejection, stating it presented unnecessary risk to state funds. She emphasized that existing legislation already enables the state to utilize cryptocurrency without jeopardizing general funds.
Similarly, Senate Bill 1025, the more ambitious “Arizona Strategic Bitcoin Reserve Act,” which proposed investing up to 10% of state treasury and retirement funds in Bitcoin and other digital assets, also met with a veto. This decision comes despite 18 of 26 US states currently having active similar bills.
Senate Bill 1024, which proposed enabling state agencies to accept cryptocurrency for taxes and fees, was also vetoed due to perceived risks, despite efforts to protect the state from price volatility.
However, Governor Hobbs approved House Bill 2387, introducing consumer protections for Bitcoin ATM operators. This includes mandatory multilingual scam warnings, detailed transaction receipts, transaction limits ($2,000 for new users, $10,500 for returning users after 10 days), 24/7 customer support, and refund provisions for crypto scams reported within 30 days. Arizona currently has 20 active Bitcoin ATMs, according to CoinATMRadar.
In a separate move, Governor Hobbs signed House Bill 2749, updating Arizona’s unclaimed property laws to include digital assets, allowing the state to retain unclaimed crypto in its original form. This demonstrates a nuanced approach to digital assets, balancing caution with the need to adapt to evolving financial landscapes.