by Matthew Holloway | May 14, 2025 | News
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.
by Matthew Holloway | Mar 6, 2025 | Economy, News
By Matthew Holloway |
The Arizona Corporation Commission (ACC) is urging caution from the public in the use of Crypto ATMs with a warning that they are being utilized to facilitate cryptocurrency scams in a bigger way “than ever before.” Reporting from the FBI has indicated losses to consumers in Arizona of over $325 million.
According to a press release by the ACC Securities Division, national data from the Federal Trade Commission (FTC) has shown American consumers reporting losses in excess of $110 million through scams linked to cryptocurrency ATMs documented in 2023, a drastic escalation at ten-times the 2020 figure.
As explained by the ACC, Crypto ATMs, kiosks that allow users to purchase cryptocurrencies using a credit or debit card, have become more ubiquitous and are visually similar to traditional ATMs. They are often located at gas stations, convenience stores, malls, and other places where an ATM would typically be present. However, unlike a typical ATM, these kiosks convert dollars to cryptocurrency held in an electronic wallet… for a fee.
Portal scamming, an already common issue at ATMs, fuel pumps, and cash registers poses an added danger with the advent of Crypto ATMs as the ACC explains:
“The scams typically start through online chats, social media, emails, texts, pop-up messages and phone calls from strangers. The lies told by scammers vary, but they create some urgent justification for consumers to take cash out of their bank accounts and put it into a crypto ATM.
“Often, the scammers fabricate an investment that promises great returns with limited risk. When consumers put their money into the crypto ATM, the ATM converts the money to cryptocurrency. The consumer types in the scammer’s electronic wallet address, or the consumer is given a QR code to scan which points to the scammer’s electronic wallet address. The ATM then transfers the crypto to the scammer’s electronic wallet. Once in their control the scammers quickly move the crypto making it very difficult to trace and recover.”
The commission offered a series of proactive recommendations to consumers to avoid becoming a victim to scam artists employing these tactics:
- Never click on links or respond directly to unexpected calls, messages, or computer pop-ups. If you think it could be legitimate, contact the company or agency, but look up their number or website yourself. Don’t use the phone number the caller or message gave you.
- Slow down. Scammers want to rush you, so stop and check it out. Before you do anything else, talk with someone you trust.
- Never withdraw cash in response to an unexpected call or message. Only scammers will tell you to do that.
- Don’t believe anyone who says you need to use a crypto ATM to protect your money or to fix a problem or to get in a great investment. Real businesses and government agencies will never do that—and anyone who asks is a scammer.
One victim identified as Tamara Glerum by AZFamily, reportedly lost $28,000 to a scammer, with the FBI stating that Arizonans overall lost about $325 million in reported Crypto ATM fraud.
As reported by ABC15, a Peoria woman reportedly lost $17,000 to such as scam, and AZ State Rep. David Marshall has introduced House Bill 2387 to crack down on Crypto ATM fraud by imposing a $1,000 daily transaction limit on the devices, requiring state operator licensing and 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.
