Arizona approves legislation establishing a crypto reserve out of public Treasury money
Arizona has approved a measure suggesting a state-run Bitcoin, stablecoin, NFT reserve.
The measure lets the state treasurer lend digital assets and invest them using state-registered crypto goods to earn profits.
Though bipartisan support for Arizona's crypto legislation, the governor's veto threat on unrelated budget concerns clouds the bill's prospects.
Limited to 10% of the state treasury, annual digital asset investments are supposed to be directed via approved crypto custodians.
As the Strategic Digital Assets Reserve Bill (SB 1373) moves, Arizona is getting closer to establishing a crypto-backed reserve despite Governor veto threats on unrelated financial conflicts.
Digital Reserve Bill passed by Arizona State first
As the Strategic Digital Assets Reserve Bill passed a congressional hearing, Arizona boldly moved toward including cryptocurrency into public financing.
After House Committee of the Whole, the measure stays one vote from the governor's desk until ultimate passage.
Should legislation be brought into effect, Arizona will become among the first states to maintain digital assets like Bitcoin, NFTs, and stablecoins in a strategic reserve run under state treasurer control.
Official records show that the measure lets Arizona use public money via approved digital custodians and crypto exchange-traded products registered in the state.
While digital lending is allowed to provide extra income, annual investments are limited at 10% of the overall fund.
Legislative appropriations and law enforcement assets confiscated would pay the reserve itself, therefore generating a self-sustaining, crypto-native fund with varying inflows.
Arizona is putting itself ahead of states like Texas and New Hampshire, which have just lately begun experimenting with blockchain regulation, while institutional interest in Bitcoin and stablecoins accelerates.
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