Arizona Legislature Approves Groundbreaking Cryptocurrency Investment Laws
Revised Base Article:
The US state of Arizona has made history by passing two pieces of legislation aimed at permitting state investments in digital assets. Senate Bill 1025, the Arizona Strategic Bitcoin Reserve Act, and Senate Bill 1373, establishing a Digital Assets Strategic Reserve Fund, are now sitting on Governor Katie Hobbs' desk, waiting for her decision.
These bills authorize the state treasurer and retirement system to park up to 10% of their funds in Bitcoin and other cryptocurrencies, making Arizona the pioneer state to wade into such legislation.
The bills were passed in the legislative chambers on April 28 and 19, respectively, with clear majorities, despite clearing the House Rules Committee only a month prior.
Bills at the Governor's Doorstep
Proponents, like co-sponsor Representative Jeff Weninger, argue that these bills offer a chance to diversify Arizona's reserves, hedge against inflation, and place the state at the pinnacle of financial innovation.
However, Governor Hobbs remains tight-lipped on her stance amidst a budget standoff in the state, and recent reports suggest that she may veto all legislation until the budget impasse is resolved. If she does, the BTC reserve bills would be as good as dead for the year, with no chance for an override or reconsideration until the next legislative session in 2026.
"Any bill not already on my desk will be vetoed until we have a serious bipartisan funding solution that protects health care for Arizonans with disabilities," Governor Hobbs declared on April 17.
SB 1025 focuses specifically on Bitcoin investments and even includes a provision for securing any BTC accumulated in a segregated account within a federal Bitcoin reserve if one comes into existence.
SB 1373, on the other hand, aims to create a Treasury-managed fund composed of cryptocurrencies seized during criminal investigations. The fund carries a cap of 10%, with an added provision that assets may be lent out to boost returns.
The Crypto Legislation Wave
With these two crypto investment bills in the final stage of voting, Arizona leads the pack according to Bitcoin Law's State Reserve Race tracker. On April 18, two crypto bills landed on Governor Hobbs' desk, with HB 2906 aiming to expand a regulatory sandbox to include crypto companies. Unfortunately, this bill fell prey to the veto. However, HB 2342, legislation designed to protect Bitcoin mining from regulatory discrimination, sailed through.
Meanwhile, elsewhere in the country, HB 92 passed the North Carolina Committee on Rules, Calendar, and Operations of the House this week and has now passed through all assigned committees. Over in California, Assembly Bill 1052, also known as the "Digital Assets Bill" (formerly the Money Transmission Act), passed a Committee vote on April 21 with bipartisan support.
Sources:
- Ars Technica
- Cointelegraph
- Arizona Capitol Times
- AZ Central
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- The Arizona Governor's decision on Senate Bill 1025 and Senate Bill 1373, which permit state investments in digital assets, including Bitcoin, is awaited, as these bills are sitting on her desk.
- If passed, the Arizona Strategic Bitcoin Reserve Act (SB 1025) would allow the state treasurer and retirement system to invest up to 10% of their funds in Bitcoin and other cryptocurrencies.
- Governor Katie Hobbs might veto all legislation until the budget impasse is resolved, which could render the BTC reserve bills ineffective for the year.
- Bitcoin mining legislation (HB 2342) has already sailed through Arizona's legislative process, offering protection from regulatory discrimination.
- In California, Assembly Bill 1052 (the "Digital Assets Bill") has received bipartisan support in a Committee vote and is progressing.
- Elsewhere in the United States, North Carolina's HB 92, aimed at expanding a regulatory sandbox to include crypto companies, has moved through all assigned committees.
