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Arizona Governor Katie Hobbs dismissed two crucial cryptocurrency-related bills on May 12, 2025, a conservative move towards digital asset implementation in the state. The first bill was Senate Bill 1373, which proposed establishing a digital assets strategic reserve fund, enabling Arizona to hold cryptocurrencies attained through seizures or legislative stipulations.
Hobbs rejected the bill, citing the high volatility of cryptocurrency markets. "Current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars," she stated in her veto letter. This decision followed her May 3 veto of Senate Bill 1025, which aimed to allow the state to invest up to 10% of its treasury and retirement funds in Bitcoin and other digital assets.
Despite her concerns, Hobbs signed House Bill 2749 which amended Arizona’s unclaimed property laws to include digital assets. This legislation enables the state to hold unclaimed cryptocurrency in its original form, instead of the cryptocurrency being converted into fiat currency.
Although Governor Hobbs vetoed bills to expand Arizona’s exposure to cryptocurrencies, she signed House Bill 2387 on May 12. This new law targets cryptocurrency ATMs and introduces strict consumer protection laws. The bill requires Bitcoin ATMs to issue clear, multilingual warnings on common scams and force users to sign agreements regarding these risks before allowing a transaction. Moreover, operators should also offer elaborate receipts with transactional data, contacts, fees, and refund policies.
House Bill 2387 also introduces transaction caps to reduce potential fraud. New users are limited to spending $2,000 per day, while returning users can transact up to $10,500 after 10 days. The bill mandates 24/7 toll-free customer service, and if a user falls victim to a scam within 30 days and provides proof, they are entitled to a full refund, including any fees. Arizona currently has 20 active Bitcoin ATMs, according to CoinATMRadar.
The vetoes and approvals made by Governor Hobbs on cryptocurrency bills point to her careful but welcoming attitude to cryptocurrency. She has supported measures to protect consumers in digital assets while vetoing legislation that may open the state to extreme financial risk. Through having House Bill 2387 approved, she hopes to provide better security for Bitcoin ATM users and minimize the risk of fraud, a serious cause for concern with the influx of crypto kiosks.
Hobbs’ current proposal to keep unclaimed digital assets in their original forms through the House Bill 2749 also indicates a consideration to keep the state’s options open on future cryptocurrency usages to ensure its financial stability. However, her refusal to consider bigger crypto reserve proposals says much about her readiness to safeguard public funds from the unpredictability of the crypto market.
These are part of a larger trend in the U.S., with 26 states considering strategic crypto reserve bills. However, Hobb’s more conservative approach places Arizona as a state that practices caution regarding innovation and finances.
