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- Arizona Governor Katie Hobbs has vetoed two pieces of cryptocurrency-related legislation while signing a third bill into law that specifically addresses fraud prevention.
- One bill sought to classify Bitcoin as legal tender within the state, while the other proposed the establishment of a state blockchain infrastructure task force.
On May 12, Arizona Governor Katie Hobbs made headlines after she vetoed two crypto bills alongside signing a bill that seeks to regulate Bitcoin (BTC) ATMs.
First, there was Senate Bill 1373, which proposed the creation of a Digital Assets Strategic Reserve Fund. The idea was to allow Arizona to hold and potentially invest in cryptocurrencies acquired through seizures. But Hobbs wasn’t having it, citing the high risk of crypto volatility. As she put it,
The current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars.
Then there was Senate Bill 1024, which would have allowed state agencies to accept payments in digital currencies like Bitcoin (BTC) for taxes, fines, and fees. While it offered some protection through third-party processors, Hobbs felt it still left too much risk on the table. “Legislators on both sides acknowledged it leaves the door open to risk,” she noted.
Earlier, on May 3rd, Hobbs had vetoed the Arizona Strategic Bitcoin Reserve Act, Senate Bill 1025, which aimed to invest up to 10% of the state treasury in Bitcoin. Hobbs was candid, calling it a “risky and untested“ move for public funds.
While Arizona is backing off state-level crypto investments for now, other states are moving forward with similar proposals. New Hampshire has already passed related legislation, and states like Texas, North Carolina, and Alabama are considering similar bills. North Carolina’s bill has even passed the House.
Bitcoin ATM Regulation
All of that notwithstanding, Governor Hobbs has already shown she’s still open to embracing the crypto space, specifically when it comes to consumer protection. She recently signed House Bill 2387 into law, which places new regulations on Bitcoin ATMs across Arizona. The bill will assist in protecting consumers from fraud by requiring operators to post clear-to-read notices about frequent crypto scams in more than one language before a transaction can proceed.
With an estimated 20 functioning Bitcoin ATMs in Arizona, the state is expecting numbers to increase as crypto usage continues to grow. The legislation requires ATM operators to provide clear receipts that include transaction details, charges, contact information, and the refund policy. New users can only transact up to $2,000 daily, while regular customers can increase that limit to $10,500 after 10 days. Notably, the law allows new users who fall victim to fraud to report it with documentation within 30 days to receive a full refund.
As previously discussed by CNF, Governor Hobbs also signed House Bill 2749, which updates Arizona’s unclaimed property laws to explicitly include cryptocurrency. The bill allows the state to hold unclaimed digital assets in their original form rather than converting them to cash.
Meanwhile, the crypto market continues to show fluctuations. Bitcoin (BTC) is currently priced around $103,600, marking a slight decline of 0.22% in the past 24 hours but a more substantial 10.59% gain over the last week, showing that despite ups and downs, investor interest in Bitcoin remains high.
