On May 13, 2025, Governor Katie Hobbs of Arizona vetoed two crypto-related bills but approved a law tightening crypto ATM regulations while updating non-receiving property laws to cover digital assets. Will Arizona miss out on opportunities with Bitcoin? Let's analyze in detail.
Two Crypto Bills Vetoed
Governor Hobbs vetoed two bills on Monday:
SB 1373 (Strategic Digital Asset Reserve Fund): This bill proposed the establishment of a fund to hold crypto from seizures or legislative allocations, not using public funds to purchase digital assets, but Hobbs rejected it because "crypto market volatility is incompatible with public funds," according to the veto letter sent to Senate President Warren Petersen.
SB 1024: This bill allows Arizona agencies to accept tax, fee, and penalty payments in crypto through a vetted provider. Hobbs acknowledged the intention to reduce volatility risk, but deemed it still "too risky."
Earlier, last week, Hobbs also vetoed SB 1025 (Strategic Bitcoin Reserve Act #Arizona ), allowing investment of 10% of state treasury and pension funds into Bitcoin. With these decisions, Arizona joins 9 other states in the U.S. in rejecting Bitcoin reserve laws, according to Bitcoin Laws.
New Law: Tightening Crypto ATM Regulations
Hobbs approved #HB2387 , a law detailing regulations for ATMs and crypto kiosks:
Require multi-language fraud warning displays, providing receipts with transaction codes and wallet addresses.
Use blockchain analysis to prevent money transfers to fraud-related wallets.
Transaction limits: $2,000/day for new customers, $10,500 for existing customers.
Mandatory 24/7 customer support and record all transactions under anti-money laundering regulations.
Progress with Digital Assets: Law Updates
Despite vetoing major crypto bills, Hobbs signed HB 2749 on Wednesday, updating Arizona's non-receiving property laws to include digital assets. The bill, led by House Commerce Committee Chairman Jeff Weninger, allows the state to hold crypto in its original form rather than liquidating it into fiat currency, paving the way for more transparent digital asset management.
Impact on the Crypto Market
This event brings many signals:
Increase vigilance: Strict ATM regulations help reduce fraud, increasing confidence for individual investors.
Promote regulation: Crypto fund inflows reached $3.4 billion last week, but a clear legal framework is needed to make the forecast of accumulating $330 billion into Bitcoin by 2029 a reality.
Stable growth: Bitcoin ($104,000), Ethereum ($2,500), and Solana ($146) continue to maintain momentum, even though Arizona has not fully opened up to crypto.
Future Prospects
Although rejecting major bills, the signing of HB 2749 shows that Arizona is not entirely closed off to crypto. If the legal framework continues to improve in the next 1-2 years, the state could attract blockchain companies, but it needs to balance investor protection and innovation to avoid falling behind other states.
Conclusion: Will Arizona Lead in Crypto or Remain Cautious?
Governor Katie Hobbs vetoed SB 1373 and SB 1024, but signed HB 2387 tightening crypto ATM regulations and HB 2749 updating digital asset laws, indicating a cautious yet open approach. With a vibrant crypto market, Arizona needs to consider carefully not to miss opportunities from the blockchain wave. Investors should closely monitor to anticipate trends.
Risk Warning: Investing in crypto carries high risks due to price volatility and legal uncertainties. Please consider carefully before participating.