Arizona Rejects Bitcoin Reserve Bills, Approves Protections at Crypto ATMs

Arizona’s latest attempt to integrate digital assets into its public finance system faced a mixed outcome this week.

Governor Katie Hobbs vetoed two high-profile crypto bills aimed at expanding the state’s use of cryptocurrencies, while approving one focused on consumer protection at crypto kiosks.

One of the rejected proposals, SB 1373, called for the creation of a Digital Assets Strategic Reserve to be managed by the State Treasurer, allowing for limited investment and lending of seized or allocated crypto assets. Governor Hobbs dismissed the bill, noting that similar provisions had already been passed under HB 2749, which lets the state claim unclaimed crypto after three years of inactivity.

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A second bill, SB 1024, would have enabled state agencies to accept crypto payments for taxes and fees. Hobbs argued the proposal didn’t adequately mitigate financial risk, despite bipartisan interest.

In contrast, she signed HB 2387 into law—a bill requiring stricter regulations for crypto kiosk operators. Under the new rules, operators must provide multilingual disclosures, offer receipts, maintain anti-fraud policies, and ensure 24/7 customer support. The law also sets daily transaction limits and guarantees refunds for verified fraudulent transactions.

While Arizona won’t be adopting state-managed crypto reserves anytime soon, the passage of HB 2387 signals a step forward in regulating consumer-facing crypto services.

Alexander Stefanov