Arizona governor vetoes bill for state-run digital assets reserve for third time

Arizona Governor Katie Hobbs has vetoed a projected instrumentality establishing a state-run Bitcoin and integer assets reserve fund.

On July 1, Governor Hobbs informed House Speaker Steve Montenegro successful a missive that she opposed House Bill 2324, which sought to found a “Digital Assets Reserve Fund” funded by transgression plus forfeiture.

In her veto letter, Governor Hobbs explained that the measure could discourage section instrumentality enforcement from collaborating with the authorities connected integer plus forfeitures. She furthered that the authorities would hinder instrumentality enforcement practice by removing seized assets from section jurisdictions.

Notably, the vetoed measure had a rocky legislative journey. It failed a last ballot successful the House successful aboriginal May earlier being revived and yet passing a Senate vote successful precocious June.

However, contempt the caller legislative support, Governor Hobbs declined to motion it into law, marking the 3rd clip she has vetoed a integer plus reserve measure this session.

Democrats’ cautious crypto approach

Governor Hobbs’ determination is accordant with her and the Democratic Party’s broader attack to crypto regulation.

While she has resisted attempts to presumption the authorities arsenic a hub for integer assets, she has supported targeted measures aimed astatine oversight and user protection.

Earlier this year, she signed House Bill 2387, which imposes stricter regulations connected crypto ATM operations successful Arizona. She besides approved a abstracted bill—House Bill 2749—that allowed the instauration of a integer assets reserve fund nether antithetic conditions.

Her attack mirrors a broader inclination among Democratic enactment members who person adopted a much blimpish presumption connected crypto.

For example, Connecticut precocious passed authorities banning authorities agencies from investing successful cryptocurrencies, a determination unanimously supported by the state’s Democratic-majority legislature and signed into instrumentality by Governor Ned Lamont.

Nationally, high-profile Democrats similar Senator Elizabeth Warren person continued to dependable alarms implicit crypto’s risks.

During caller discussions surrounding the GENIUS Act, a caller measure designed to enforce safeguards connected the stablecoin sector, Warren pointed out that the illness of large crypto firms successful 2022 was a near-miss fiscal disaster, arsenic it resulted successful a $2 trillion marketplace drop.

The statement highlights increasing partisan differences connected crypto policy. Democrats telephone for tighter regulation, portion Republicans, including President Donald Trump, propulsion for much unfastened engagement with the industry.

The station Arizona politician vetoes measure for state-run integer assets reserve for 3rd time appeared archetypal connected CryptoSlate.