TL;DR
- Vetoed Crypto Bills: Governor Hobbs blocked two bills, one for a crypto reserve fund and another allowing crypto payments for fines, citing excessive risk to state funds.
- Protecting Public Assets: Concerned by the volatility of digital currencies, Hobbs emphasized safeguarding the state’s finances and has already enacted safer crypto usage measures.
- Enhanced Consumer Protections: While vetoing risky measures, she signed a bill imposing strict risk disclosures, transaction limits, and improved customer service for crypto kiosk operators.
Arizona Governor Katie Hobbs has taken a cautious stance on expanding state exposure to the volatile crypto market by vetoing two proposed bills. In a decisive move, Hobbs rejected Senate Bill 1373, which sought to create a strategic reserve fund using seized crypto assets, and Senate Bill 1024, a measure that would have allowed state agencies to accept cryptocurrencies as payment for fines or civil penalties.
Cautious Approach to Crypto Legislation
Governor Hobbs explained that the inherent volatility of digital currencies makes them unsuitable for roles that directly interface with state funds. “I have already signed legislation this session which allows the state to utilize cryptocurrency without placing general fund dollars at risk,” she remarked in her veto letter.
By rejecting these bills, Hobbs underscored her priority of protecting public funds from the unpredictable swings of the crypto market. This proactive decision arrives at a time when lawmakers across the political spectrum are debating the merits and risks of digital asset integration into government processes.
Earlier in the session, she also vetoed a separate measure that would have permitted the state’s treasurer and retirement systems to invest up to 10% of their funds in crypto assets, further highlighting her cautious approach.
New Measures for Crypto Kiosk Operators
In contrast to her vetoes, Governor Hobbs signed House Bill 2387 into law on the same day, a move aimed at bolstering consumer protections. This new law imposes stringent risk-disclosure requirements on crypto kiosk operators. Under the bill, operators must display clear consumer fraud warnings and obtain explicit customer acknowledgment of the associated risks.
Additionally, it mandates detailed transaction receipts, imposes a daily transaction limit of $2,000 for new customers, and requires 24/7 live customer service. These measures are designed to shield vulnerable groups, particularly seniors, from potential fraud, while still enabling access to digital assets in a regulated manner.
Balancing Innovation with Fiscal Prudence
Governor Hobbs’ choice highlights a significant issue for regulators: promoting innovation in the digital economy while ensuring the stability of public finances. Arizona aims to be a state that embraces technological progress while also being cautious about protecting its resources.
