Arizona Governor vetoes Bitcoin Reservbills, approves crypto ATM law

On May 12, 2025, Arizona Governor Katie Hobbs rejected two crypto bills, effectively halting the state’s efforts to expand its role in digital assets.

If passed, Senate Bill 1373 would have allowed Arizona to create a Digital Assets Strategic Reserve Fund, which would have stored crypto assets obtained through either legal confiscations or legislative support.

Hobbs vetoed the proposed legislation, citing risk-related concerns.

“Current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars,”

Hobbs referred to existing legislation she had signed earlier, which authorizes limited cryptocurrency use in government operations.

The governor noted that the earlier legislation operates without tapping into general fund allocations.

On May 3, Hobbs vetoed Senate Bill 1025, a proposal known as the Arizona Strategic Bitcoin Reserve Act.

Had it been approved, the proposal would have allowed the state to invest a tenth of its treasury and retirement portfolios in cryptocurrencies.

According to data from bitcoinlaws.io, 26 U.S. states have proposed crypto reserve bills, and 18 of them are still undergoing legislative scrutiny.

Hobbs also blocked SB 1024, which proposed enabling state departments to receive cryptocurrency for various payments, including fines, fees, and taxes.

The legislation specified that approved service providers would process all payments, avoiding direct crypto market exposure. Nonetheless, Hobbs rejected it, citing that it “poses too much risk.”

This action has halted Arizona’s proposed bills regarding the use and storage of cryptocurrencies in public financial operations.

On the same day she vetoed the reserve bills, Hobbs signed House Bill 2387 into law, which outlines new regulatory measures for cryptocurrency kiosks.

This law establishes a framework for operating Bitcoin ATMs in the state.

With the new rules in place, machines must provide warnings in several languages, alerting users to common crypto scams.

To proceed with a transaction, users must first acknowledge their understanding of the potential risks.

This legislation requires receipts to include specific details, such as the time of the transaction, transaction value, operator contact information, fee breakdown, and refund terms.

The new rules impose daily transaction limits, allowing new users to send up to $2,000 only.

Users who return after 10 days can make transactions up to $10,500 per day.

In addition, kiosks must provide continuous, toll-free customer service, ensuring the phone number is clearly visible.

If a new user is scammed and provides proof within 30 days, they are entitled to a full refund, including all fees.

On February 25, Democratic Senator Dick Durbin of Illinois, a former chair of the Senate Judiciary Committee, introduced legislation to curb fraud involving cryptocurrency ATMs in the United States.

In an effort to combat scams, particularly those affecting senior citizens, he proposed the Crypto ATM Fraud Prevention Act, which introduces practical safeguards.

According to Senator Durbin, the bill offers “special protection” to new users of crypto ATMs during their first two weeks.

As per CoinATMRadar, 20 Bitcoin ATMs currently operate across Arizona.

Although Hobbs blocked the core crypto bills this session, she hasn’t completely ruled out regulating digital assets.

On Wednesday, Hobbs signed House Bill 2749 into law, which updates Arizona’s unclaimed property statutes to include digital assets.

Led by Jeff Weninger, Chairman of the House Commerce Committee, the bill allows Arizona to retain unclaimed cryptocurrency without liquidating it into fiat money.

The change gives Arizona a structured approach to holding unclaimed tokens, avoiding the immediate sale or conversion. The bill passed without any opposition.