- Katie Hobbs vetoed bills on digital assets and crypto payments.
- HB 2387 regulates ATM fraud in Arizona.
- Arizonans’ retirement funds remain protected from crypto risks.
Governor Hobbs’ decision reflects broader concerns over cryptocurrency risks in public finance, as evidenced by previous vetoes in other U.S. states.
Details of the Legislative Actions
Governor Katie Hobbs vetoed SB 1373 and SB 1024, both significant bills that aimed to integrate cryptocurrencies into Arizona’s public finance system. While rejecting these, she enacted HB 2387, which imposes stricter controls on crypto ATMs to combat fraud and enhance consumer protection.
Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency.
Senator Wendy Rogers and Representative Jeff Weninger sponsored the vetoed bills, aiming to make Arizona a leader in digital asset adoption. Meanwhile, Representative David Marshall introduced the signed HB 2387.
Implications for the State and Beyond
The vetoed bills, which proposed investments up to 10% of state funds in cryptocurrencies and permitted state agencies to accept digital payments, did not move forward, halting potential institutional capital inflows. By contrast, the newly signed bill introduces daily transaction limits and enhanced anti-money laundering protocols on cryptocurrency ATMs.
Hobbs’ decision aligns Arizona with other states that have exhibited caution towards integrating public finances with crypto assets. Attorney General Kris Mayes highlighted an increase in Bitcoin-related scams as supporting evidence for enacting HB 2387. “Bitcoin-related scams are increasing due to the cryptocurrency’s difficult-to-trace nature,” she noted. More details are available via this interview with ABC15/State.
This regulatory move signals ongoing caution in the U.S. regarding public financial interactions with cryptocurrencies. Market reaction remains minimal due to the localized impact and absence of operational changes. Nevertheless, this highlights a sustained regulatory focus aimed at fraud prevention and conservative financial management.
