Arizona Governor Katie Hobbs has vetoed two cryptocurrency-related payments handed by the state legislature, citing issues over the monetary dangers concerned in integrating digital property with state operations.
The choice displays the governor’s cautious method to digital property regardless of rising legislative curiosity in crypto initiatives. Each measures would have expanded the position of cryptocurrency inside state monetary mechanisms, however have been finally blocked on account of what Hobbs described as “an excessive amount of threat.”
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 straight concerned taxpayer cash, it raised issues for Hobbs about connecting state monetary infrastructure to a unstable asset class.
In her veto letter, the governor acknowledged the usage of 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 Belongings Reserve Fund, funded solely by seized crypto. Indicators consolation with state-held BTC and will raise SB 1373’s possibilities. 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 straight inside the crypto ecosystem, a view that has seen some bipartisan acknowledgment amongst lawmakers.
The rejection of SB 1024 follows an analogous veto earlier within the month of SB 1025, which might have approved Arizona’s state treasurer and retirement methods to allocate as much as 10% of their portfolios in digital currencies.
Shopper Safety Measures Win Approval Amid Regulatory Balancing Act
Whereas Governor Hobbs has blocked broader adoption efforts, she has proven assist for crypto regulation supposed to guard shoppers. Final week, she signed Home Invoice 2387 into regulation, which imposes a variety of necessities on cryptocurrency kiosk operators.
Underneath HB 2387, kiosks should show client warnings about fraud, accumulate buyer threat acknowledgment statements, present transaction receipts, and implement a $2,000 each day transaction cap for brand new customers.
Moreover, kiosk operators should keep 24/7 customer support to help customers and mitigate misuse, a component designed to safeguard susceptible populations, particularly seniors.
The contrasting selections spotlight a measured regulatory stance by the Arizona governor: supportive of protecting oversight however hesitant to embrace broader state-level crypto adoption. Arizona’s method mirrors tendencies in different US states grappling with the stability between innovation and public sector threat publicity.
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