Arizona Governor Katie Hobbs has decided to veto two bills related to cryptocurrency, Senate Bill 1373 and Senate Bill 1024, which has paused the state's progress in incorporating digital assets into its public financial system.

Despite this, Governor Hobbs signed House Bill 2387, which focuses on regulating cryptocurrency kiosk operators to safeguard consumers and prevent fraud.

One of the bills she vetoed, SB 1373, proposed creating a Digital Assets Strategic Reserve Fund managed by the State Treasurer, who would be able to invest and loan digital assets from secure custody solutions. However, Hobbs declined it, mentioning that a similar bill had been enacted recently.

Another vetoed bill, SB 1024, sponsored by Senator Wendy Rogers and Representative Jeff Weninger, intended to enable state agencies to accept cryptocurrency for various payments. Yet again, Governor Hobbs vetoed it due to concerns about the associated risks.

In contrast, one bill that Governor Hobbs approved was HB 2387, which imposes regulations on crypto kiosk operators to enhance consumer protection. The bill requires clear disclosures, detailed receipts, anti-fraud policies, and 24/7 customer service. It also specifies transaction limits and refund policies for fraudulent transactions.