The Arizona state legislature recently approved two bills that could establish the country’s first state Bitcoin reserve, pending approval from Democratic Governor Katie Hobbs. The legislation, primarily supported by Republicans, allows the state to invest up to 10% of its public funds—over $30 billion in state-managed assets—into digital assets like Bitcoin. This move emulates former President Donald Trump’s national strategy for a “strategic crypto reserve,” although some in the crypto community were uncomfortable with Trump’s inclusion of more volatile cryptocurrencies.
State Senator Wendy Rogers, a proponent of the bills, believes signing them could enhance the governor’s image and appeal to younger and independent voters drawn to cryptocurrency. Despite uncertainty about how Hobbs will act, Republican consultant Barrett Marson suggested that state Republicans look to Trump’s policies for direction. He noted that Hobbs would likely weigh the volatility of Bitcoin in her decision-making process.
Rogers, however, dismissed concerns about Bitcoin’s fluctuating value, arguing that its long-term performance shows consistent growth and positioning it as a hedge against inflation. She emphasized that individual assessments would be necessary for other cryptocurrencies.
Ultimately, the fate of these groundbreaking bills hinges on Hobbs’ decision, with significant implications for Arizona’s financial strategy and the national cryptocurrency landscape. If enacted, Arizona would become a trailblazer in cryptocurrency investment at the state level, potentially influencing other states to follow suit.
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