By Matthew Holloway |
While states like Florida and Louisiana have forged ahead with crypto currency legislation, Governor Katie Hobbs, who has vetoed a total of 304 bills since taking office in 2023, vetoed three cryptocurrency bills in a matter of days.
Hobbs did sign HB2387, creating stricter regulations on Bitcoin ATMs. And she also signed HB2749 into law, allowing the state to hold cryptocurrency as unclaimed property. Hobbs vetoed SB1025 on May 3rd and then followed with vetoes against SB1024 and SB1373 on Monday.
The three bills would have respectively, allowed “the State Treasurer, the Arizona State Retirement System and the Public Safety Personnel Retirement System (public funds) to invest up to 10 percent of the public monies under its control in virtual currency holdings,” “authorize(d) a state agency to enter into an agreement with a cryptocurrency service provider to accept cryptocurrency as a payment method,” and “Establishe(d) the Digital Assets Strategic Reserve Fund (Fund), administered by the State Treasurer…consisting of monies appropriated by the Legislature and digital assets seized by the state.”
In the Governor’s letters to Senate President Warren Petersen explaining her vetoes, Hobbs repeatedly phrased the cryptocurrency-related laws as “risk(s),” “untested,” and suggested that her previous actions on cryptocurrency were “responsible.”
Senate Bill 1373: “Today, I vetoed Senate Bill 1373. Current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars. I have already signed legislation this session which allows the state to utilize cryptocurrency without placing general fund dollars at risk, which is the responsible path to take.”
Senate Bill 1025: “Today, I vetoed Senate Bill 1025. The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments. Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency.”
Senate Bill 1024- “Today, I vetoed Senate Bill 1024. While this bill would allow State agencies to enter into agreements to protect the State from risks associated with cryptocurrency, legislators on both sides of the aisle acknowledged it still leaves the door open for too much risk.”
As previously reported by AZ Free News, HB2387, introduced by Rep. David Marshall (R-LD7), is designed to crack down on Crypto ATM fraud by imposing a $2,000 daily transaction limit on the devices, increased to $10,500 for return customers after ten days, requiring state operator licensing, and requiring refund policy options as well.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
