Arizona Gov. Katie Hobbs vetoed two cryptocurrency-related bills passed by the state legislature, citing concerns over the financial risks of integrating digital assets with state operations into digital assets.
The decision reflects the governor’s growing interest in legislation in crypto plans, but the governor’s cautious approach to digital assets. Both measures will expand the role of cryptocurrencies in state financial mechanisms, but are ultimately blocked due to what Hobbes calls “too many risks.”
Details of rejected cryptocurrency bills
The first bill, Senate Bill 1373, will create a strategic reserve fund from seizure of cryptocurrency assets. While the fund will not directly involve taxpayer money, it raises concerns about linking state financial infrastructure to volatile asset classes.
In her veto letter, the governor acknowledged the use of cryptocurrencies in the national process, but stressed that the “current volatility” in the digital asset market makes it unsuitable for reserve fund programs.
Prior to this legislative session, Hobbes did sign Bill 2749 into law, which allows the creation of reserves from unclaimed crypto assets, but has clear restrictions on legislative oversight.
Governor Hobbs Mark HB 2749 – Arizona’s Bitcoin and Digital Asset Reserve Fund, funded only by Ceiedied Crypto. Signals are comfortable for state-controlled BTC and can improve SB 1373’s chances. State level $ btc Keep the momentum up #bitcoin #Arizona #StrategicReserves
– SSI (Sosovalue index) (@sosovalue) May 8, 2025
In addition to SB 1373, Governor Hobbs rejected Senate Bill 1024, which would allow Arizona state agencies to accept digital currency as a form of payment for fines and civil fines.
Her veto cited risks that enable government agencies to operate directly in crypto ecosystems, a view that has seen bipartisan endorsement from lawmakers.
SB 1024’s rejection comes after SB 1025’s similar veto, which would authorize Arizona’s state treasurer and retirement system to allocate up to 10% of its digital currency portfolio.
Consumer protection measures win approval in Regulatory Balance Act
Although Governor Hobbs hindered wider adoption efforts, she expressed support for crypto regulations designed to protect consumers. Last week, she signed the House Bill of 2387 into law, which put forward a series of requirements for cryptocurrency kiosk operators.
According to HB 2387, kiosks must display consumer warnings about fraud, collect customer risk confirmation statements, provide transaction receipts, and enforce a daily transaction cap of $2,000 for new users.
In addition, kiosk operators must maintain 24/7 customer service to help users and mitigate abuse, an element designed to protect vulnerable groups, especially the elderly.
The comparison decision highlights the Arizona governor’s Measurement Regulation stance: supporting protective oversight but hesitantly accepting wider state-level crypto adoption. The Arizona approach reflects trends in other U.S. states, struggling to balance innovation and public sector exposure.
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