Arizona Governor Katie Hobbs vetoed two cryptocurrency bills, SB 1024 and SB 1373, due to concerns about market volatility impacting state funds. SB 1373 aimed to establish a Digital Assets Strategic Reserve Fund, while SB 1024 would have allowed agencies to accept crypto payments. Hobbs highlighted the imprudent nature of investing public funds in cryptocurrencies, reiterating that taxpayer-backed portfolios should prioritize stability. Instead, she signed HB 2387, introducing strict regulations for crypto ATMs, including multilingual fraud warnings, transaction caps of $2,000 for new customers, and rigorous compliance with anti-money laundering protocols. This law mandates kiosk operators to document transactions and offer 24/7 customer support. In contrast to these vetoes, Arizona has seen several failed attempts by different states to advance Bitcoin reserve legislation, joining a growing list of states wary of investing taxpayer money in digital assets. While digital asset initiatives face hurdles in Arizona, the state did pass HB 2749, which allows the state to retain unclaimed cryptocurrencies, signaling some progress in digital asset regulation.

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