Arizona Continues Towards Establishing an Official Bitcoin Reserve Fund
The Arizona Senate voted to revive the previously rejected bill to establish a state-managed Bitcoin reserve fund, expanding the potential for integrating cryptocurrency into the state's public financial system. This decision clearly reflects the Arizona government's ambition to become a leading blockchain and cryptocurrency investment hub in the United States.
Bill HB 2324, previously rejected in the House's third session on May 7, has been reconsidered and passed by the Senate with a narrow vote of 16-14 on Thursday. Next, the bill will return to the House for further voting to expand the cryptocurrency-based financial strategy.
Proposal for the Bitcoin Reserve Fund and Public Policy Impact
HB 2324 proposes the establishment of a 'Bitcoin and Digital Asset Reserve Fund' to manage digital assets recovered from criminal seizures. Introduced by Republican Senator Jeff Weninger, the bill is part of the state's strategy to regulate and integrate cryptocurrencies like Bitcoin, Ethereum, and other tokens into institutional public policy.
The policy is expected to distribute 50% of the seized funds exceeding $300,000 to the Attorney General, 25% to the general fund, and the remaining 25% to a newly established reserve fund. These regulations aim to maximize benefits and minimize risks from the state's legal investment activities.
In the deciding vote, the Republicans are dominant, with the only exception being Senator Jake Hoffman who opposed the bill. For approval, the bill needs a simple majority in the House of 60 members, of which 33 are Republicans, before being sent to Governor Katie Hobbs for final approval.
Governor Hobbs Draws the Line in Cryptocurrency Strategy
Governor Hobbs has asserted a clear stance on cryptocurrency in her policies. On May 7, she signed HB 2749, allowing the state to retain unclaimed cryptocurrency and establish a Bitcoin reserve fund without relying on the state's general budget. She permitted staking and Airdrop activities, along with recognizing all profits into the reserve fund.
However, she rejected two other crypto bills in May. SB 1025, intended to establish the 'Arizona Strategic Bitcoin Reserve Fund,' allows the state to invest up to 10% of its monetary reserves from the budget into cryptocurrency. She expressed concerns about the market's high volatility and risks to the general budget.
In her rejection letter, she emphasized: 'The current volatility of the cryptocurrency market is not suitable for general reserves.' Another bill, SB 1373, aimed at establishing a Digital Asset Reserve Fund, was also rejected a few days later.
In the new draft law, HB 2324 also updates Arizona's asset recovery laws to include digital assets under certain conditions such as the owner passing away, being evicted, or being unable to identify through reasonable efforts. This opens up significant opportunities to strengthen the legal framework protecting the state's cryptocurrency-related activities.
The final voting process in the House of Representatives will determine whether Arizona will take the next step to become one of the leading states for crypto in the United States. This is a strategic development in the context of increasingly fierce competition in the financial policy model based on digital assets.
Source: https://tintucbitcoin.com/arizona-senate-khoi-phuc-du-luat-bitcoin-day-trien-vong/
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