On Could 12, Arizona Governor Katie Hobbs rejected three crypto-friendly payments, Senate Payments 1373, 1024, and 1095.
The payments aimed to increase the federal government’s function in digital asset adoption whereas opposing central financial institution digital currencies (CBDCs).
On the similar time, the governor signed a brand new legislation, Home Invoice 2387, that introduces tighter guidelines for crypto ATM operations within the state.
The strikes replicate the governor’s cautious strategy to integrating digital belongings into the state’s regulatory panorama.
Why Hobbs blocked the pro-crypto measures
Senate Invoice 1373, which proposed utilizing confiscated digital belongings to fund a reserve account, was rejected over issues about exposing state funds to risky belongings.
Hobbs identified that present legal guidelines permit restricted use of such funds with out risking the overall fund.
In line with her:
“Present volatility in cryptocurrency markets doesn’t make a prudent match for common fund {dollars}. I’ve already signed laws this session which permits the state to make the most of cryptocurrency with out inserting common fund {dollars} in danger, which is the accountable path to take.”
The governor additionally blocked Senate Invoice 1024, which might have allowed crypto funds for fines and different state-imposed fees.
Though the invoice included third-party cost suppliers as intermediaries, Hobbs argued the measure nonetheless left the state susceptible.
She emphasised that legislators from each events shared this concern, noting that:
“Whereas this invoice would permit State companies to enter into agreements to guard the State from dangers related to cryptocurrency, legislators on each side of the aisle acknowledged it nonetheless leaves the door open for an excessive amount of danger.”
On the difficulty of CBDCs, Hobbs vetoed Senate Invoice 1095, which aimed to ban their use preemptively.
The governor dismissed the invoice as pointless, noting that no such digital forex at present exists within the US.
Crypto ATM rules
Regardless of the vetoes, Governor Hobbs signed Home Invoice 2387, establishing clear guidelines for state crypto ATM operations.
The laws requires kiosk operators to show multilingual fraud alerts, difficulty receipts with pockets addresses, and supply transaction hashes. ATM operators should additionally deploy blockchain analytics to establish suspicious exercise involving their machines.
The legislation additionally limits every day transactions at crypto kiosks to $2,000 for brand spanking new clients and $10,500 for present ones. In the meantime, the invoice famous:
“If a brand new buyer as outlined in subsection l, paragraph 7 of this part has been fraudulently induced to interact in a cryptocurrency kiosk transaction, the cryptocurrency kiosk operator shall difficulty a full refund for the fraudulently induced cryptocurrency kiosk transaction, together with any charges charged in affiliation with the transaction.”
As well as, the operators should provide round the clock customer support and preserve full compliance with anti-money laundering (AML) necessities.