In a move in line with a guarded strategy of cryptocurrency integration, Arizona Governor Katie Hobbs has vetoed two high-profile crypto-related bills while signing into law a bill to regulate Bitcoin ATMs. The move defines the state’s strategy to merge innovation and consumer protection in the fast-changing digital asset environment.
Bills vetoed: Strategic Bitcoin Reserve and Crypto Payments
Governor Hobbs vetoed Senate Bill 1025, the “Arizona Strategic Bitcoin Reserve Act,” which would have invested up to 10% of the state treasury and retirement funds in Bitcoin and other digital currencies. Hobbs, in her veto message, expressed fears about the volatility of cryptocurrency markets and that the investments do not represent a prudent use of public money.
In addition, she vetoed Senate Bill 1024 that would have allowed state agencies to accept cryptocurrency payments for taxes, fines, and fees via approved service providers. Even with provisions to limit risk exposure, Hobbs stated that the bill remained too exposed to financial instability.
Enacted Legislation: Bitcoin ATM Consumer Protection
In contrast to her vetoes, Governor Hobbs signed House Bill 2387 into law, implementing strict regulations for cryptocurrency ATMs and kiosks throughout Arizona. The bill adds an obligation to post conspicuous, multilingual warnings regarding popular crypto scams, with users being asked to sign an acknowledgment of the risks before consummating transactions. Operators are obliged to offer detailed receipts, including transaction information, contact details, fees, and return policies.
The legislation also sets transaction limits, with new users limited to $2,000 per day and repeat users limited to $10,500 per day after 10 days. In addition, kiosk operators must provide 24/7 toll-free customer support and prominently display the contact number on each machine. Importantly, if a new user is duped into sending cryptocurrency under false representations and reports it with evidence within 30 days, the user can get a full refund, including fees.
Also read: U.S. Vice President JD Vance to Deliver Keynote at Bitcoin 2025 Conference
