On May 12, 2025, Arizona Governor Katie Hobbs vetoed two crypto-related bills, halting the state’s plans to expand its role in digital assets.
The first bill, Senate Bill 1373, would have created a Digital Assets Strategic Reserve Fund. Arizona could have held cryptocurrencies obtained through seizures or legislative allocations. Hobbs rejected the bill, citing concerns about risk.
“Current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars,” she wrote in her veto letter.
She also referred to other legislation she had already signed that permits limited use of cryptocurrency in state operations. This previous law does not involve allocating general fund money, according to the governor.
In an earlier decision on May 3, Hobbs vetoed Senate Bill 1025, called the Arizona Strategic Bitcoin Reserve Act. This proposal would have authorized the state to invest up to 10% of treasury and retirement funds in Bitcoin and other cryptocurrencies.
As noted by bitcoinlaws.io, 26 U.S. states have introduced bills to form crypto reserves. Out of these, 18 remain under discussion or active review.
No Crypto Payments for Taxes in Arizona
Governor Hobbs also blocked Senate Bill 1024, which would have allowed state agencies to accept crypto for payments. This included taxes, fines, and fees.
The bill required all payments to go through approved service providers, shielding the state from direct crypto market exposure. However, Hobbs said it still posed “too much risk” and refused to sign it into law.
With this move, the Arizona crypto bills for both holding and using cryptocurrencies in public finance have been paused.
New Bitcoin ATM Law Adds Limits and Rules
While Hobbs vetoed the reserve bills, she signed House Bill 2387 on May 12, introducing new cryptocurrency kiosk regulations.
This law sets standards for Bitcoin ATMs operating in the state. Under the new rules, machines must display warnings in multiple languages to alert users about common crypto scams. Before completing any transaction, users must confirm they understand the risks.
The law also requires detailed receipts, including transaction time, value, contact details of the operator, fee breakdown, and refund conditions.
Transaction limits now apply. New users may only send up to $2,000 per day. After 10 days, returning users can send up to $10,500 daily.
Additionally, every kiosk must provide 24/7 toll-free customer service, with the phone number displayed clearly on the machine. If a new user is scammed and reports the fraud with proof within 30 days, they are eligible for a full refund, including all fees.
According to CoinATMRadar, Arizona has 20 active Bitcoin ATMs.
Unclaimed Digital Assets Law Signed
In a separate development, Hobbs approved House Bill 2749 on May 14, updating Arizona’s law on unclaimed property.
The new law adds unclaimed digital assets like cryptocurrencies to the state’s list of holdings. Instead of converting these assets into fiat, the state can now retain them in their original digital form.
This change gives Arizona a clear process for holding unclaimed tokens without converting them or selling them off immediately. The bill was passed without opposition.