Arizona Governor Katie Hobbs has taken an important initiative in cryptocurrency legislation. She has blocked two bills aimed at expanding the state’s digital asset involvement while approving strict Bitcoin ATM regulations.
As per the statement, on May 12, 2025, Hobbs vetoed Senate Bill 1373, which proposed a Digital Assets Strategic Reserve Fund to hold seized or allocated cryptocurrencies. She cited the volatility of crypto markets, stating, “Current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars.”
On May 3, a statement followed her veto of Senate Bill 1025, the Arizona Strategic Bitcoin Reserve Act, which would have allowed up to 10% of state treasury and retirement funds to be invested in Bitcoin and other digital assets. Hobbs has implemented several regulations regarding cryptocurrency laws.
She has also vetoed Senate Bill 1024, which sought to permit the state agencies to accept cryptocurrency payments like Bitcoin for taxes and fees. She deemed it too risky, despite having protections against price swings.
However, she approved House Bill 2387 on May 12. This law includes strict, robust consumer protections for Bitcoin ATM operators to prevent fraud. The law mandates multilingual scam warnings, user acknowledgements, and detailed receipts with transaction data and refund policies.
Its new users can only spend $2,000 per day, and its returning users can spend $10,500 after 10 days, requiring 24/7 customer service. If new users fall victim to a scam and report it within 30 days, they will receive full refunds, including fees. According to current sources, Arizona has 20 active Bitcoin ATMs.
Hobbs also signed House Bill 2749, which lets the state keep unclaimed cryptocurrencies as they are instead of turning them into regular money. The move shows that she is open to digital currencies, but in a careful way. While 26 other U.S. states are exploring crypto funds, Hobbs’ decisions show she wants to protect people and keep the state’s finances safe while still allowing some crypto use.
