The 'BTC Strategic Reserve' Proposal Vetoed, Bitcoin Price Drops to US$96,000
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The price of Bitcoin fell in trading on Saturday (5/3). The price of the cryptocurrency plummeted to US$96,000. This is not unrelated to the rejection of crypto-based public funding in Arizona, United States (US).
Arizona Governor, Katie Hobbs, vetoed Senate Bill 1025: Arizona Strategic Bitcoin Reserve Act. She stated that the reason for the veto was to uphold conservative principles in managing the state's pension funds.
“Today I vetoed Senate Bill 1025. The pension funds of Arizona residents are not a place to experiment with untested investments like virtual currency,” wrote Hobbs, as reported on Sunday (5/4).
The proposed regulation was initially seen as having the potential to revolutionize the investment strategy of the state's pension fund by allowing the purchase of Bitcoin and other cryptocurrencies.
It would enable public funds, including the state pension system, to allocate up to 10% of their portfolio to digital assets.
This rejection has triggered a strong reaction from the crypto community, which views it as a missed golden opportunity for Arizona to lead innovation in the digital asset sector.
Hobbs' veto is in line with the principle of caution in public investments, and the debate about the position of crypto in national finance is still far from over.
