Arizona Governor Katie Hobbs has vetoed two cryptocurrency-related payments handed by the state legislature, citing considerations over the monetary dangers concerned in integrating digital property with state operations.
The choice displays the governor’s cautious strategy to digital property regardless of rising legislative curiosity in crypto initiatives. Each measures would have expanded the function of cryptocurrency inside state monetary mechanisms, however had been finally blocked on account of what Hobbs described as “an excessive amount of danger.”
Detailing The Rejected Crypto Payments
The primary invoice, Senate Invoice 1373, would have created a strategic reserve fund from seized cryptocurrency property. Whereas this fund wouldn’t have immediately concerned taxpayer cash, it raised considerations for Hobbs about connecting state monetary infrastructure to a risky asset class.
In her veto letter, the governor acknowledged using crypto in state processes however emphasised that “present volatility” within the digital asset market makes it unsuitable for reserve fund planning.
Earlier this legislative session, Hobbs did signal Home Invoice 2749 into regulation, which permits for a reserve fund to be created from unclaimed crypto property, however with clear restrictions round legislative oversight.
Gov. Hobbs indicators HB 2749—Arizona’s Bitcoin & Digital Property Reserve Fund, funded solely by seized crypto. Indicators consolation with state-held BTC and will carry SB 1373’s probabilities. State-level $BTC reserve momentum rising.🏛️⚡️ #Bitcoin #Arizona #StrategicReserves https://t.co/zOGiPW57Vq
— SSI (SoSoValue Indexes) (@SoSoValue) Could 8, 2025
Along with SB 1373, Governor Hobbs additionally rejected Senate Invoice 1024, which might have permitted Arizona state businesses to simply accept digital forex as a type of cost for fines and civil penalties.
Her veto cited the dangers of enabling authorities establishments to function immediately inside the crypto ecosystem, a view that has seen some bipartisan acknowledgment amongst lawmakers.
The rejection of SB 1024 follows the same veto earlier within the month of SB 1025, which might have approved Arizona’s state treasurer and retirement programs to allocate as much as 10% of their portfolios in digital currencies.
Client Safety Measures Win Approval Amid Regulatory Balancing Act
Whereas Governor Hobbs has blocked broader adoption efforts, she has proven assist for crypto regulation meant to guard shoppers. Final week, she signed Home Invoice 2387 into regulation, which imposes a variety of necessities on cryptocurrency kiosk operators.
Beneath HB 2387, kiosks should show shopper warnings about fraud, gather buyer danger acknowledgment statements, present transaction receipts, and implement a $2,000 every day transaction cap for brand spanking new customers.
Moreover, kiosk operators should preserve 24/7 customer support to help customers and mitigate misuse, a component designed to safeguard weak populations, particularly seniors.
The contrasting choices spotlight a measured regulatory stance by the Arizona governor: supportive of protecting oversight however hesitant to embrace broader state-level crypto adoption. Arizona’s strategy mirrors traits in different US states grappling with the steadiness between innovation and public sector danger publicity.
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