Arizona Vetoes Cryptocurrency Initiatives
Date: 2025-05-14 Author: Henry Casey Categories: IN WORLD
Arizona Governor Katie Hobbs rejected two bills concerning the use of cryptocurrency in public administration. In her opinion, the proposed measures may carry financial risks due to the instability of digital assets.
One of the bills proposed the creation of a reserve fund filled with seized cryptocurrency assets. However, Hobbs recalled that a less risky law had already been passed earlier, allowing the use of digital assets within certain limits that do not directly affect the state budget. According to her, the instability of the crypto market makes such initiatives potentially dangerous.
Another rejected document provided for the possibility of paying fines in cryptocurrency through government agencies. Hobbs considered this practice premature, emphasizing that unstable assets should not directly interact with government agencies.
This is not the first time that the governor has blocked cryptocurrency initiatives. She had previously vetoed a bill that would have allowed Arizona pension funds to invest up to 10% in cryptocurrency.
However, not all crypto initiatives have met with resistance. Hobbs supported a bill aimed at strengthening controls over crypto ATMs. According to the new rules, cryptocurrency ATM operators are required to:
- Provide information about possible fraudulent risks,
- Issue detailed receipts for each transaction,
- Introduce a daily limit of $2,000 for new customers,
- Provide 24/7 technical support.
This law is designed to increase protection for vulnerable groups, including the elderly. It will come into force after final ratification.
Similar caution is observed in other regions of the United States. In Florida, lawmakers stopped discussing projects that could legalize investments in bitcoin by government agencies. Similar attempts to create crypto reserves have previously failed in the states of Wyoming, Oklahoma, Montana, Pennsylvania, and North and South Dakota.
Amid general skepticism, New Hampshire on May 6 became the first state in the country to officially allow government agencies to invest in digital assets, demonstrating the opposite approach to regulating the crypto industry.
