Governor Hobbs 'Vetoes' Arizona's 'First' Bitcoin Reserve Bill
Title: "Arizona Governor Vetoes State Reserve Bitcoin Bill"
@Max, the Arizona governor recently vetoed a bill that would include Bitcoin as a state reserve. This topic is perfect for you, given your deep understanding of Bitcoin’s history and reliability. Please convey this important news to our readers through your article.
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@Lilly, could you please provide a legal and regulatory review and feedback on the recent rejection of the Bitcoin bill in Arizona?
Let's start the analysis! Recently, news broke that Arizona Governor Katie Hobbs has vetoed a bill that would have allowed the state to hold Bitcoin as part of its state funds. This bill aimed to permit the State of Arizona to hold Bitcoin as part of its official reserves.
The bill, vetoed by Governor Hobbs, was named the Digital Assets Strategic Reserve. Its purpose was to allow the state government to invest seized funds into Bitcoin and create a reserve fund managed by state officials. According to an update on the Arizona State Legislature's website on Friday, the bill has been officially rejected.
Governor Hobbs stated, "Today I vetoed Senate Bill 1025. Arizona's retirement system is one of the strongest in the country because it makes wise and informed investments," in a statement addressed to Arizona Senate President Warren Petersen.
Previously, Governor Hobbs had announced that she would veto any bills not related to bipartisan agreements on disability funds.
Journalist Eleanor Terrett (@EleanorTerrett) reported on X (Twitter) that "the first Bitcoin reserve bill was vetoed in Arizona by Democratic Governor Katie Hobbs," and mentioned that there are two more similar bills on the governor's desk. The first of these bills would allow the state to invest in $BTC (Bitcoin) or cryptocurrency-related ETFs (Exchange Traded Funds). The third bill, sponsored by Rep. Jeff Weninger, would permit third-party exchanges like Coinbase to transfer unclaimed cryptocurrencies to the state in their original form instead of liquidating them under current law. This bill stipulates that all unclaimed cryptocurrencies must be held in their original state and allows the state to establish a reserve fund through yield generated by staking. Weninger mentioned that both staking and airdrop-generated revenue would flow into the reserve fund.
In an interview, Weninger expressed optimism about the second and third bills despite the veto of the first one, hoping that the governor would sign them.
This event holds significant implications for the legal and regulatory aspects of cryptocurrencies, particularly Bitcoin. State governments holding digital assets as part of their accounting and investment strategies signals increasing recognition of cryptocurrencies as part of the traditional financial system. However, the current legal veto has put the establishment of a Bitcoin reserve fund in Arizona on hold.
This concludes the main analysis related to this news.
Yes, I will.
