10 hours Ago By PYMNTS
Arizona’s governor has vetoed legislation that would have let the state invest in cryptocurrency.“The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments,” Gov. Katie Hobbs wrote Friday (May 2) in a letter to state Sen.
Warren Petersen, president of the state Senate.“Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currencу.”State lawmakers last week approved legislation that would have established a bitcoin reserve, allowing the state to invest as much as 10% of its public funds in digital assets.
Republican state Sen. Wendy Rogers told NBC News last week that it was in Hobbs’ best interest to sign the legislation, which would have created the first state-level bitcoin reserve in the country.“Crypto and bitcoin have a huge following nationwide and in Arizona.
They are wildly popular with the youth and independents,” Rogers said, adding, “I certainly hope she signs it, because she can take credit and it will make her look good.”She voiced her disappointment with Hobbs on X following the governor’s decision on Friday, writing: “Politicians don’t understand that Bitcoin doesn’t need Arizona. Arizona needs Bitcoin.
”The efforts by state lawmakers to establish an Arizona bitcoin reserve mirror plans by President Donald Trump to create a similar reserve on a national level. And as PYMNTS wrote last week, it’s also a sign of the growing mainstream adoption of cryptocurrencies.“Observers believe it is becoming increasingly held, across Wall Street and beyond, that digital assets may no longer be confined to speculative circles.
As bitcoin ETFs become a growing component of diversified portfolios and regulatory frameworks begin to crystallize, the decentralization dream that once defined crypto appears to be giving way to a new era of structured integration.“It’s no longer a novelty to see major investment firms exploring crypto, but this year has seen a turning point. Morgan Stanley is preparing to offer cryptocurrency trading to its vast E*Trade customer base as soon as next year, with the potential to introduce millions of retail investors to digital assets via a familiar platform.
“Meanwhile, Charles Schwab is preparing to offer spot crypto trading for bitcoin and ethereum within the year, with the goal of meeting increasing demand from traditional investors.“These moves are not isolated,” the report added. “BlackRock, the world’s largest asset manager, is pushing blockchain technology deeper into conventional finance.
The firm recently announced plans to register a new share class of its $150 billion money market fund on a blockchain, a step designed to enhance transparency and operational efficiency.”The post Arizona Governor Shoots Down Plans for State Bitcoin Reserve appeared first on PYMNTS.com.
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