14 Januari 2026
Arizona doesn't seem to be getting caught up in the explosive growth of the cryptocurrency world. Yesterday, Governor Katie Hobbs introduced two major bills for crypto rejected, which were intended to expand the use of digital assets within the state. At the same time, however, she signed a strict measure that should regulate the operation of crypto ATMs.
Among the rejected proposals was Senator Bill 1373, which would have established a Digital Assets Strategic Reserve Fund. The fund would have held crypto acquired through seizure or legislative approval. The bill did not intend to use public funds to purchase digital assets, but it did provide a framework for their custody and management. Although well-intentioned, Hobbs rejected it due to market instability.
“In today's volatile cryptocurrency markets, it is unwise to deploy general fund money,” Hobbs wrote in her veto letter to Senate Majority Leader Warren Petersen.
Her veto followed the rejection of Senator Bill 1025, the prominent “Arizona Strategic Bitcoin Reserve Act,” which allowed for up to 10% of government and pension funds to be invested in Bitcoin and other digital assets. While Bill 1373 targeted assets already on the ground or seized, Bill 1025 would have put taxpayer money at risk by investing it on the open market.
With these rejections, Arizona has joined a group of at least nine other states that have blocked similar bills to establish Bitcoin reserves.
Earlier this week, Hobbs also shot down Senator Bill 1024, which would have allowed Arizona to accept crypto payments for fines, taxes and fees through agreements with approved service providers. While the bill was intended to protect the state from market fluctuations, she said the risks were still too great.
The only crypto-related bill to receive her signature is House Bill 2387, which focuses on regulating crypto kiosks and vending machines. This new law requires operators to display multilingual fraud warnings, document transactions with their hash and wallet address, and use blockchain analytics to prevent fraudulent activity. It also sets a daily transaction limit of $2.000 for new customers and $10.500 for existing customers of the crypto vending machines.
Additionally, crypto ATM operators must provide 24/7 customer service and document all transactions in accordance with anti-money laundering protocols. Despite rejecting major crypto bills, Hobbs is not completely closing the door on digital asset regulation.
On Friday, she signed House Bill 2749, which updates Arizona’s unclaimed property law to include digital assets. The law, initiated by House Commerce Committee Chairman Jeff Weninger, allows the state to keep unclaimed crypto in its original form, rather than converting it to fiat currency.
The development in Arizona shows that while cryptocurrency adoption is not without its bumps, there is still room for progress. It’s like riding a swing: even with the ups and downs, we can make solid progress as long as we find the right balance.
Why did Governor Hobbs reject the crypto bills?
Hobbs rejected the proposals due to current market uncertainty and the risk to public funds.
What is House Bill 2387?
This law regulates the operation of crypto ATMs by imposing strict requirements on operators, such as multilingual fraud warnings and documentation of transactions.
What does the approval of House Bill 2749 mean for Arizona?
This law allows the state to retain unclaimed crypto instead of converting it to fiat, which is an important step in recognizing digital assets as legitimate property.
Bitcoin (BTC)
Ethereum (ETH)
XRP (XRP)
