Arizona Governor Katie Hobbs has rejected a legislative bill that would allow the establishment of Bitcoin Reserve. The Grand Canyon state is on an increasing list of other US states where legislative efforts to direct Bitcoin to invest in states have proven to be futile.
Bitcoin, unencrypted investment, says Gov. Hobbs
In an executive letter dated May 2, Arizona Gov. Katy Hobbs rejected State Senate Bill 1025, which aimed to allow digital assets to be adopted as part of the state’s official reserves.
Specifically, SB 1025 allowed the Arizona Department of Treasury to allocate 10% of its managed assets to Bitcoin and other virtual assets. Additionally, the bill also proposed the creation of a Digital Asset Strategic Reserve Fund, designed to hold all seized crypto assets from criminal and illegal businesses.
In particular, the Arizona Senators led by Hong. Warren Petersen approved the bill with a 31-25 vote that was heavily contested on April 29th to become the first state to establish a Bitcoin Reserve after the US federal government.
However, Governor Hobbs agreed with his vote and rejected the provisions of SB 1025 at the time of his presentation for enforcement approval. Former social workers and Senate minority leaders have passed on the decision to Senate President Petersen, citing its credibility as an investment in digital assets.
The Governor of Arizona said:
Today I rejected Senate Bill 1025. The Arizona Retirement System is one of the most powerful systems in the country, as it makes healthy and informed investments. Arizonan’s retirement fund is not where the state attempts to invest in untested investments like cryptocurrency.
After this development, Arizona will drop out of the race to create a Bitcoin reserve, following a push by the Donald Trump administration to establish a crypto-friendly environment in the United States.
Sixteen US states have introduced laws related to the creation of Bitcoin Reserves. State such as New Hampshire, North Carolina, have successfully passed the House Committee. Meanwhile, states such as Oklahoma, Pennsylvania, North Dakota, Wyoming, Montana and South Dakota have rejected the proposed reserve bill.
Overview of the Crypto Market
The press conference said the total Crypto market is valued at $2.99 trillion after a 0.82% decline in the past day. Meanwhile, the total transaction volume is currently valued at $48.77 billion.
Bitcoin, the best cryptocurrency, has seen market rebounds in the last two weeks and is now valued at $96,011. Other top cryptocurrencies, including Ethereum, Solana and XRP, also follow the major cryptocurrencies reporting profits of 2.11%, 26.75% and 6.88% in the last month.
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