Arizona Governor Rejects Two Cryptocurrency-Related Bills | Signs ATM Fraud Prevention Bill

Table of Contents* 1. Arizona Governor Vetoes Cryptocurrency Utilization Bill

• 1.1. The reason for exercising the veto is "the high level of risk"
• 1.2. The Bitcoin Reserve Act was also rejected.

• 2. The cryptocurrency ATM bill has been enacted | Strengthening measures to prevent fraud damage
• 3. Arizona will manage unclaimed virtual coins.

Arizona Governor Vetoes Cryptocurrency Utilization Bill

Governor Katie Hobbs of Arizona, USA, exercised veto power against two bills related to virtual currency (cryptographic assets) on May 12, 2025.

The veto was exercised this time on the Senate bills "SB-1024" and "SB-1373."

SB-1024 is a bill that allows government agencies, such as state governments and public facilities, to accept public payments like fines and taxes in cryptocurrency. On the other hand, SB-1373 establishes a "Digital Asset Strategy Reserve Fund" for managing cryptocurrencies seized or acquired by the state government.

The reason for exercising the veto is "the high level of risk"

Governor Hobbs pointed out in a letter regarding the veto of SB-1373 that "the current price volatility of the virtual currency market is not suitable for the investment of general fund assets." He emphasized the risks of allocating state public funds to such volatile assets and clearly indicated a cautious stance.

Furthermore, regarding SB-1024, while we appreciate the innovative intent of the bill, we are concerned that it "still opens the door to financial risks."

Bitcoin reserve bill also rejected

Governor Hobbs exercised veto power over "SB-1025," which allows the state to invest up to 10% of public funds in cryptocurrencies such as Bitcoin (BTC), on May 3, prior to this.

The governor expressed concerns about rejecting SB-1025, stating that "cryptocurrencies have an insufficient long-term track record and are high-risk assets with price volatility." He believes that important public funds, such as retirement pensions, should not be exposed to such risky assets.

Similar "Bitcoin reserve" proposals have been suggested in other states, but at least nine states have rejected or abandoned them so far. Arizona has become the tenth state in the nation to block the establishment of such Bitcoin reserves.

Cryptocurrency ATM Bill Passed | Strengthening Fraud Prevention

On the other hand, the anti-fraud bill regarding cryptocurrency ATMs, "HB-2387," has been signed and enacted. This bill introduces strict regulations for cryptocurrency ATMs and aims to strengthen the prevention of fraud.

Under the new law, operators of cryptocurrency ATMs are specifically required to implement the following measures.

• Multi-language Fraud Warning Display: Before users conduct transactions, alerts to prevent fraud are displayed in multiple languages.
• Issuance of Transaction Details: A receipt stating the recipient's wallet address and transaction hash (transaction history identifier) will be issued.
• Fraud Prevention Measures and Strengthening Compliance: Implemented a system to prevent transfers to wallets suspected of being used for fraud by utilizing blockchain analysis tools. All transaction records are stored in accordance with anti-money laundering regulations, and providing 24/7 customer support is also mandatory.
• Setting a Limit on Transaction Amounts: A daily limit is set on the transaction amount per user, with new customers having a limit of $2,000 (approximately 296,000 yen) per day, and existing customers having a limit of $10,500 (approximately 1,550,000 yen).

This law was formulated against the backdrop of the frequent occurrence of cryptocurrency fraud cases targeting the elderly.

According to a report by the FBI, the total damage to residents in Arizona from cryptocurrency fraud in 2023 reached approximately $127 million (around 19 billion yen), with seniors aged 60 and over particularly being targeted.

Arizona Attorney General Chris Mays has also warned that "there is a surge in difficult-to-trace cryptocurrency fraud," and the enactment of this new law is expected to significantly strengthen consumer protection and deter fraud victims.

Arizona to Manage Unclaimed Virtual Coins

Governor Hobbs has exercised veto power repeatedly against the proposals for the utilization of virtual currency during this session of the legislature, but he has shown a positive attitude towards the proper management and regulation of virtual currencies.

The governor signed House Bill HB-2749 on May 7, establishing a law to amend the state’s unclaimed property law to allow the state to hold and manage virtual currency directly.

Under this new law, virtual currencies that have been dormant for three years without any transactions will be treated as "abandoned assets," allowing state governments to store and manage them as original assets without cashing them in. Furthermore, they will be able to utilize them for revenue operations such as staking as needed.

The main aim is to generate revenue without adding additional burdens to the state finances by effectively utilizing existing cryptocurrency assets without new budgetary input.

This law makes Arizona the first state in the nation to legally hold and manage unclaimed virtual currency. This demonstrates Governor Hobbs' proactive stance on the proposal to utilize virtual currency, which he deemed "low-risk".

Governor Hobbs' series of policy decisions has garnered a certain level of appreciation both inside and outside the state as a balanced and practical approach, stating that "while avoiding the risk of injecting new public funds into unverified cryptocurrencies, we will actively work on regulatory frameworks that utilize existing cryptocurrency assets."

*The price is based on the exchange rate at the time of writing (1 dollar = 148.06 yen)

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Source: Letter of Veto

Written and translated by: BITTIMES Editorial Department

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