Arizona Governor Hobbs blocks two crypto bills, citing ‘too much risk’

Arizona Governor Katie Hobbs vetoed two crypto bills on Monday, citing concerns over risks in bridging state funds and agencies with the "volatile" cryptocurrency market.One of the bills that Hobbs rejected was Senate Bill 1373, which sought to establish a strategic reserve fund out of seized crypto assets."I have already signed legislation this session which allows the state to utilize cryptocurrency without placing general fund dollars at risk," Governor Hobbs wrote in a Monday veto letter, adding that "current volatility" in crypto markets does not make a good fit for general fund dollars.While not mentioned in the letter, Governor Hobbs signed House Bill 2749 into law last Wednesday, establishing a reserve fund for unclaimed crypto assets that could be tapped for future use upon legislative approval.Another bill that the Arizona governor rejected Monday was SB 1024, which would have paved the way for state agencies to accept crypto as a payment method of fines or civil penalties. In rejecting SB 1024, Hobbs cited "too much risk" associated with linking state agencies to cryptocurrencies — a concern acknowledged by lawmakers on both sides of the aisle on "both sides of the aisle."Earlier this month, Hobbs also vetoed SB 1025, which would have allowed the state's treasurer and retirement systems to invest up to 10% of their funds in crypto assets.Meanwhile, Governor Hobbs approved HB 2387, which introduced stringent risk-disclosure requirements for operators of crypto kiosks.The HB 2387 requires crypto kiosks to display clear consumer fraud warnings, obtain customer acknowledgment of risks, and provide detailed transaction receipts. It also imposes a $2,000 daily transaction limit for new customers and mandates 24-7 live customer service, aiming to prevent fraud from targeting vulnerable citizens — particularly seniors.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.