Arizona Bitcoin Reserve Rejected as Governor Vetoes Crypto Bills

Arizona Bitcoin Reserve Decision Reflects Cautious Crypto Policy

Governor Vetoes Key Crypto Bills, Tightens Rules on BTC ATMs

Governor Katie Hobbs has taken a firm stance on Arizona Bitcoin Reserve by rejecting three major decentralised money related bills. While she blocked proposals to expand the State’s involvement in digital assets, she also supported new consumer protection for BTC ATM users. Hobbs said the idea was too risky, pointing to the unpredictability of digital currency markets. “Today, I vetoed Senate Bill 1373. Current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars.” She wrote in a letter to Senate President Warren Petersen. 

Arizona Bitcoin Reserve Plan Rejected

Earlier this month, on May 3, Hobbs also vetoed the Arizona Strategic Bitcoin Reserve Act (SB 1025). This bill would have allowed the state to invest up to 10% of public treasury and retirement funds in BTC and other DeFi currencies.

No to Crypto Payments for Taxes and Fees

Another bill, Senate Bill 1024, was also turned down. This one would have let state agencies accept DeFi payments for things like taxes and fees.

Consumer Protection for Crypto ATMs Approved

Although Governor Hobbs has blocked these investments in the Arizona Bitcoin Reserve, she did approve House Bill 2378, which introduced stricter rules for Crypto ATMs in the state. This law, signed on May 12, aims to protect consumers by requiring such machines to post clear, multilingual warnings about scams. Users must read and agree to these warnings before they make a transaction.

Detailed Receipts and Spending Limits Introduced

The law also says that ATM operators must provide detailed receipts. These must include the amount transacted, fees charged, customer support contact info, and refund policy. There are now spending limits too:

• New users can only spend up to $2,000 on their first day.

• Returning users can spend up to $10,500 after 10 days.

Refunds Available for Scam Victims

Importantly, users who fall for scams and report the incident within 30 days will be eligible for full refunds, including fees.

Unclaimed Crypto Now Recognized by the State

Additionally, Hobbs signed House Bill 2749, updating State's unclaimed property laws. The state will now be able to hold unclaimed digital currencies in its original digital format, just like other forms of lost property.

What This Means for the Global DeFi Landscape

Governor Hobb’s decision on the Arizona Bitcoin Reserve reflects a growing global trend of the government proceeding cautiously with such regulations. By rejecting risky investments but embracing stronger protection for the users, ARZ sets a precedent for balancing innovation with safety. Declining Arizona Bitcoin Reserve could encourage other states to avoid using public funds for volatile peer-to-peer investments while pushing for tighter rules on digital money services. Over time, such moves may strengthen consumer trust in crypto space but also limit rapid adoption by government institutions worldwide.