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Arizona Shuts Down Bitcoin Reserve Bill Proposal Community reaction
Arizona Governor Katie Hobbs vetoed the Bitcoin Reserve and Crypto Payments bills, blocking the integration of crypto into the state's public finances.
The last couple of months have been full of ups and downs for Bitcoin eeserve bills and regulations. While one state moves forward with a bill promoting the use of crypto-assets, another rejects it.
Now, Arizona Governor Katie Hobbs has vetoed two major crypto bills after green-lighting one last week.
On Monday, the governor's office shared that two bills, SB 1373 and SB 1024, had been vetoed by Katie Hobbs.
The first bill, SB 1373, would have allowed Arizona to hold cryptocurrencies like bitcoin as part of its state reserve assets. The state could have stored up to 10% of Arizona's rainy day funds in digital assets like Bitcoin.
Bitcoin Reserve Bill Blocked
The governor shared his letter to Senate President Warren Patterson, outlining the reasoning behind his veto. It read:
“The current volatility in the cryptocurrency market is not a good fit for general fund dollars. I have already signed legislation this session that allows the state to use cryptocurrencies without jeopardizing general fund dollars, which is a responsible path to take.”
Hobbs was referring to Arizona House Bill 2749, which he signed on May 7. Under that law, Arizona could hold digital assets like bitcoin that are unclaimed as part of the state’s reserve.
However, if the ongoing SB 1373 bill clears the governor's desk, Arizona would be the second US state to have a bitcoin reserve, after New Hampshire, which passed a similar bill last week.
Community Reaction to Arizona Governor’s Veto
On May 3, Governor Hobbs also vetoed a bill, SB 1025, that would have allowed Arizona to invest retirement funds in crypto assets, creating a Bitcoin reserve. The crypto community reacted strongly to the veto, with crypto investor Anthony Pompliano stating:
Arizona's governor just vetoed a bill that would have seen the state invest in bitcoin. Imagine the ignorance of a politician who can make investment decisions. If she can’t make Bitcoin better, she should buy it.
Arizona's governor just vetoed a bill that would have seen the state invest in bitcoin. Imagine the ignorance of a politician who can make investment decisions. If she can’t make Bitcoin better, she should buy it.
Arizona state Sen. Wendy Rogers also famously said:
Politicians don't understand that Arizona doesn't need Bitcoin. Arizona Needs Bitcoin
On May 12, Hobbs signed a bill around crypto regulating Bitcoin ATMs. The bill, House Bill 2387, introduces cash deposits and withdrawal limits to combat money laundering and fraud.
The crypto community was also not happy with the move, accusing Arizona of not accepting crypto as state currency, but preparing to add crypto regulations and restrictions to its broader jurisdiction.
Crypto Integration in State Finance Delays
The other major vetoed bill, SB 1024, would have enabled citizens to make civic payments, including taxes, using cryptocurrencies.
This would make Arizona the first US state to integrate crypto into both state treasury and payment systems. But in a clear sign that the state is not ready to take the leap, Hobbes kills them both.
This isn’t the first time Gov. Hobbs has blocked pro-crypto legislation. In 2023, he vetoed a bill that would have made bitcoin legal tender in Arizona, arguing that such a move was clearly within the jurisdiction of the federal government, not individual states.
Arizona's decision is part of a growing pattern of cautious state-level bitcoin reserve bills.
While states like New Hampshire, Wyoming, and Florida are taking a pro-crypto stance, others are hesitant, particularly in the absence of federal direction.
But as more and more states are slowly opening up, it's clear that Bitcoin surged past $100K last week as three US states approved crypto-BTC reserve laws in 24 hours.
#BTC #CryptoBillUpdate #Market_Update #MarketSentimentToday #CryptoNewss
The last couple of months have been full of ups and downs for Bitcoin eeserve bills and regulations. While one state moves forward with a bill promoting the use of crypto-assets, another rejects it.
Now, Arizona Governor Katie Hobbs has vetoed two major crypto bills after green-lighting one last week.
On Monday, the governor's office shared that two bills, SB 1373 and SB 1024, had been vetoed by Katie Hobbs.
The first bill, SB 1373, would have allowed Arizona to hold cryptocurrencies like bitcoin as part of its state reserve assets. The state could have stored up to 10% of Arizona's rainy day funds in digital assets like Bitcoin.
Bitcoin Reserve Bill Blocked
The governor shared his letter to Senate President Warren Patterson, outlining the reasoning behind his veto. It read:
“The current volatility in the cryptocurrency market is not a good fit for general fund dollars. I have already signed legislation this session that allows the state to use cryptocurrencies without jeopardizing general fund dollars, which is a responsible path to take.”
Hobbs was referring to Arizona House Bill 2749, which he signed on May 7. Under that law, Arizona could hold digital assets like bitcoin that are unclaimed as part of the state’s reserve.
However, if the ongoing SB 1373 bill clears the governor's desk, Arizona would be the second US state to have a bitcoin reserve, after New Hampshire, which passed a similar bill last week.
Community Reaction to Arizona Governor’s Veto
On May 3, Governor Hobbs also vetoed a bill, SB 1025, that would have allowed Arizona to invest retirement funds in crypto assets, creating a Bitcoin reserve. The crypto community reacted strongly to the veto, with crypto investor Anthony Pompliano stating:
Arizona's governor just vetoed a bill that would have seen the state invest in bitcoin. Imagine the ignorance of a politician who can make investment decisions. If she can’t make Bitcoin better, she should buy it.
Arizona's governor just vetoed a bill that would have seen the state invest in bitcoin. Imagine the ignorance of a politician who can make investment decisions. If she can’t make Bitcoin better, she should buy it.
Arizona state Sen. Wendy Rogers also famously said:
Politicians don't understand that Arizona doesn't need Bitcoin. Arizona Needs Bitcoin
On May 12, Hobbs signed a bill around crypto regulating Bitcoin ATMs. The bill, House Bill 2387, introduces cash deposits and withdrawal limits to combat money laundering and fraud.
The crypto community was also not happy with the move, accusing Arizona of not accepting crypto as state currency, but preparing to add crypto regulations and restrictions to its broader jurisdiction.
Crypto Integration in State Finance Delays
The other major vetoed bill, SB 1024, would have enabled citizens to make civic payments, including taxes, using cryptocurrencies.
This would make Arizona the first US state to integrate crypto into both state treasury and payment systems. But in a clear sign that the state is not ready to take the leap, Hobbes kills them both.
This isn’t the first time Gov. Hobbs has blocked pro-crypto legislation. In 2023, he vetoed a bill that would have made bitcoin legal tender in Arizona, arguing that such a move was clearly within the jurisdiction of the federal government, not individual states.
Arizona's decision is part of a growing pattern of cautious state-level bitcoin reserve bills.
While states like New Hampshire, Wyoming, and Florida are taking a pro-crypto stance, others are hesitant, particularly in the absence of federal direction.
But as more and more states are slowly opening up, it's clear that Bitcoin surged past $100K last week as three US states approved crypto-BTC reserve laws in 24 hours.
#BTC #CryptoBillUpdate #Market_Update #MarketSentimentToday #CryptoNewss
The new draft discussion from the U.S. House of Representatives aims to clarify digital commodity transactions by specifying that buying and selling digital commodities on the secondary market don't automatically trigger U.S. securities laws. This exemption applies unless the sale gives the purchaser ownership rights or claims to the issuer's business, profits, or assets.
Key provisions of the draft bill include:
- *Clarifying Jurisdiction*: The bill defines the regulatory responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over digital assets. Digital commodities will fall under CFTC jurisdiction, while restricted digital assets will be subject to SEC oversight.
- *Defining Digital Commodities*: A digital asset is considered a digital commodity if it's issued through a distribution that's open to all participants equally, acquired through a digital commodity exchange, and related to a functionally decentralized blockchain protocol.
- *Reducing Market Concentration*: The bill lowers the threshold for defining "affiliated persons" from 5% to 1%, aiming to reduce the influence of large crypto firms and promote broader market participation.
- *Consumer Protection*: The draft prioritizes consumer protection, mandating disclosure requirements, and detailing procedures for registering digital commodity exchanges.
- *Regulatory Framework*: The bill establishes a comprehensive regulatory framework for digital assets, providing clarity on issues like decentralization, functionality, and transaction security.
This draft bill marks a significant step in regulating the crypto industry and could set a precedent for global regulatory standards. However, its future is uncertain, and potential amendments are likely before a House vote.
#CryptoBillUpdate #DigitalCommodityLaw #USCryptoRegulation #BlockchainLegislation
#USHouseMarketStructureDraft
Key provisions of the draft bill include:
- *Clarifying Jurisdiction*: The bill defines the regulatory responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over digital assets. Digital commodities will fall under CFTC jurisdiction, while restricted digital assets will be subject to SEC oversight.
- *Defining Digital Commodities*: A digital asset is considered a digital commodity if it's issued through a distribution that's open to all participants equally, acquired through a digital commodity exchange, and related to a functionally decentralized blockchain protocol.
- *Reducing Market Concentration*: The bill lowers the threshold for defining "affiliated persons" from 5% to 1%, aiming to reduce the influence of large crypto firms and promote broader market participation.
- *Consumer Protection*: The draft prioritizes consumer protection, mandating disclosure requirements, and detailing procedures for registering digital commodity exchanges.
- *Regulatory Framework*: The bill establishes a comprehensive regulatory framework for digital assets, providing clarity on issues like decentralization, functionality, and transaction security.
This draft bill marks a significant step in regulating the crypto industry and could set a precedent for global regulatory standards. However, its future is uncertain, and potential amendments are likely before a House vote.
#CryptoBillUpdate #DigitalCommodityLaw #USCryptoRegulation #BlockchainLegislation
#USHouseMarketStructureDraft
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