Arizona governor kills two crypto bills, cracks down on Bitcoin ATMs

Arizona Governor Katie Hobbs recently made key decisions regarding cryptocurrency legislation, demonstrating a cautious approach to integrating digital assets into the state’s financial system. While she vetoed several bills aimed at expanding Arizona’s involvement in cryptocurrencies, she also signed a measure designed to enhance consumer protection within the industry.

Hobbs vetoed Senate Bill 1373, which proposed a Digital Assets Strategic Reserve Fund to hold crypto assets acquired through seizures or legislative allocations. Her veto letter cited the volatility of cryptocurrency markets as unsuitable for general fund dollars, noting that existing legislation already allows the state to utilize cryptocurrency without risking general fund assets.

Similarly, the more ambitious “Arizona Strategic Bitcoin Reserve Act” (Senate Bill 1025), which proposed allocating up to 10% of state treasury and retirement funds to Bitcoin and other digital assets, was also vetoed. This decision comes despite 26 US states introducing similar strategic crypto reserve bills, with 18 currently active. Senate Bill 1024, allowing state agencies to accept cryptocurrency payments, was also rejected due to perceived risk, despite attempts to mitigate price volatility exposure.

However, Hobbs’ actions are not entirely dismissive of digital assets. She signed House Bill 2749, updating Arizona’s unclaimed property laws to include digital assets, allowing the state to retain unclaimed cryptocurrencies in their original form instead of liquidating them. Furthermore, she approved House Bill 2387, a consumer protection measure targeting Bitcoin ATMs. This bill introduces stringent regulations, including multilingual scam warnings, detailed receipts, transaction limits ($2,000 for new users, $10,500 for returning users), 24/7 customer service, and a 30-day refund policy for victims of fraud. These regulations aim to increase transparency and protect consumers from potential scams within the state’s approximately 20 Bitcoin ATMs. The governor’s approach balances concerns about cryptocurrency volatility with a recognition of its growing presence and the need for consumer safeguards.