Arizona Governor Vetoes Two Crypto Bills, Cites High Risk

Arizona Governor Katie Hobbs has vetoed two cryptocurrency-related bills, raising concerns about the risks of integrating volatile digital assets with state agencies and funds.

One of the rejected bills, Senate Bill 1373, aimed to create a strategic reserve fund using seized crypto assets. In her veto statement, Governor Hobbs emphasized that the state should not expose public funds to the uncertainties of crypto markets, stating:

“Current volatility in crypto markets does not make a good fit for general fund dollars.”

The second vetoed proposal, SB 1024, would have allowed state agencies to accept cryptocurrency payments for fines and civil penalties. Hobbs again cited excessive risk as her reason for rejection, echoing bipartisan concerns.

This isn't the first crypto-related bill she has blocked — earlier this month, Hobbs vetoed SB 1025, which would have allowed state investments in crypto through treasurer and retirement systems.

However, not all crypto legislation was denied. Governor Hobbs approved HB 2387, a bill that tightens regulations on crypto kiosk operators. The law includes measures like:

• Mandatory fraud risk disclosures

• $2,000 daily transaction limits for new users

• 24/7 customer support

• Detailed receipts and risk acknowledgment

The aim is to increase transparency and reduce fraud, particularly to protect vulnerable citizens such as seniors.