Key Takeaways
- Arizona Governor vetoed bills to create a Bitcoin reserve and accept Bitcoin payments.
- Hobbs approved strict new rules for Bitcoin ATMs, including transaction caps and refund rights.
- A separate bill updating unclaimed property laws now lets Arizona retain unclaimed Bitcoin.
Arizona Governor Katie Hobbs has vetoed two key bills that would have expanded the state’s role in Bitcoin adoption, while approving legislation to tightly regulate Bitcoin ATMs.
Senate Bill 1025 rejection
On May 3, Hobbs rejected Senate Bill 1025, which would have created the Arizona Strategic Bitcoin Reserve Act, allowing up to 10% of state treasury and retirement funds to be invested in Bitcoin and other digital assets.
Senate Bill 1373 rejection
A week later, she also vetoed Senate Bill 1373, which proposed a Digital Assets Strategic Reserve Fund for holding crypto seized by the state or allocated through legislation.
In her veto of SB 1373, Hobbs wrote:
Current volatility in cryptocurrency markets does not make a prudent fit for general fund dollar.
She added that other laws passed this session already permit crypto usage without putting state funds at risk.
Senate Bill 1024 rejection
She also rejected Senate Bill 1024, which would have allowed state agencies to accept Bitcoin for taxes, fines, and fees, citing the continued exposure to price risk despite attempts to mitigate it.
Approval of Bitcoin ATM regulation
However, on May 12, Hobbs signed House Bill 2387, which regulates Bitcoin ATMs across the state.
The new law mandates warnings in multiple languages, daily transaction limits ($2,000 for new users; $10,500 after 10 days), and 24/7 customer service.
If a new user is scammed and reports it within 30 days with proof, they’re entitled to a full refund.
Current Bitcoin ATM status
Arizona currently has 20 active Bitcoin ATMs, according to CoinATMRadar.
