U.S. Bitcoin Reserve Set to Launch in Arizona - Potential Beneficiaries Discussed
Crypto Crashlands: Arizona Wagers Big on Bitcoin
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Arizona is gambling on crypto, positioning itself as the first US state to establish a Bitcoin reserve. With two bills, SB1025 and SB1373, Legislators have cast their chips, and now it's the governor's turn to roll.
Biting the Bitcoin Bullet
On a stormy April day, the Arizona House gave the green light to Senate Bill 1025, nicknamed the "Arizona Strategic Bitcoin Reserve Act." The vote was loud and clear - 31-25-4. This act lays the groundwork for the state to start treating Bitcoin as a strategic investment asset.
But that wasn't all - Senate Bill 1373 also got the nod, with a vote of 37-19-4. This bill creates a "Digital Assets Strategic Reserve Fund," a war chest for managing digital assets.
Both bills, having already passed the Arizona Senate on February 27, are now waiting on Governor Katie Hobbs' signature.
Representative Jeff Weninger weighed in on SB1025:
"This bill basically lets the treasurer invest up to 10% into, probably mainly Bitcoin, but other things as well." He added, "This probably would start as a 'may' for the foreseeable future, but as things continue to pivot towards Bitcoin, would have that already in place in the future."
Challenges Upping the Ante
Despite the high stakes, Arizona isn't halfway there. The final bet rests on Governor Hobbs, who initially threatened to veto any bill without a bipartisan funding plan for healthcare for Arizonians with disabilities.
However, recent developments in the political climate might ease her stance, raising the likelihood that the bills receive her signature and become law.
Should she sign, Arizona will etch itself in the history books, becoming the first US state with a Bitcoin reserve.
The Crypto Casinos of New England
New Hampshire is joining in the crypto card game, moving forward with House Bill 302. After clearance from a second Senate committee, the bill is now up for a full Senate vote.
As momentum grows, industry experts predict that around 20 state-level Bitcoin reserve bills could collectively drive over $23 billion in new demand for Bitcoin.
Mathew Sigel, VanEck's Head of Research, summed it up nicely:
"If enacted, they could drive $23 billion in buying, or 247k BTC. This sum is independent of any pension fund allocations, likely to rise if legislators move forward."
The Gamble's Odds
Despite the growing interest in state-level Bitcoin reserves, the market remains skeptical about federal action. According to Polymarket data, the chances of former President Trump establishing a Bitcoin reserve in his first 100 days have plummeted to just 2%.
Regardless of federal policy, Bitcoin is on a winning streak, trading at $94,773.14 as of press time, a modest 0.14% gain in the past 24 hours. Will Arizona strike gold, or will the Bitcoin falls fold? Only time will tell.
Tune in for more crypto news, and don't forget to share your thoughts on Arizona's bold move!
[1] [https://en.wikipedia.org/wiki/Cryptocurrency][3] [https://en.wikipedia.org/wiki/Arizona][5] [https://www.invictus.capital/blog/arizona-may-become-first-us-state-to-allow-bitcoin-reserve-through-new-bill/]
- Arizona is planning to create a Bitcoin reserve, making it the first US state to do so, should Governor Katie Hobbs sign Senate Bills 1025 and 1373.
- Senate Bill 1025, also known as the "Arizona Strategic Bitcoin Reserve Act," allows the treasurer to invest up to 10% into strategic assets, primarily Bitcoin.
- The "Digital Assets Strategic Reserve Fund" established by Senate Bill 1373 will serve as a management fund for digital assets, not just Bitcoin.
- Both bills have passed the Arizona Senate and the House, awaiting Governor Hobbs' signature for them to become law.
- Representative Jeff Weninger believes that the bill allows for future investment in other cryptocurrencies like Ethereum (ETH), alongside Bitcoin (BTC).
- Governor Hobbs initially expressed opposition to any bills without a bipartisan funding plan for healthcare for Arizonians with disabilities. However, recent political developments have increased the chances of the bills receiving her signature.
- Other states, like New Hampshire, are also exploring the establishment of Bitcoin reserves, potentially driving over $23 billion in new demand for Bitcoin within the foreseeable future.
