Arizona Senate Revives Plan for a State Bitcoin Reserve

Ohio’s House also recently passed the pro-crypto Blockchain Basics Act, offering tax exemptions for small crypto transactions and protections for miners and self-custody. Internationally, South Korea is weighing a won-based stablecoin amid a push for crypto-friendly reforms under President Lee Jae-myung. Arizona Revives Bitcoin Reserve Bill Arizona’s efforts to incorporate Bitcoin and digital assets into state policy recently picked up momentum again, with House Bill 2324 now back in play after a Senate vote to reconsider the legislation. It was initially defeated in the Arizona House on May 7, but the bill is now slated for another vote after the Senate passed a motion 16-14 to bring it back for review. The motion was filed by Republican Senator Janae Shamp, one of the lawmakers who previously opposed the bill. This is a procedural requirement for reconsideration. The bill seeks to establish a “Bitcoin and Digital Assets Reserve Fund” for managing criminally forfeited digital assets and sets out specific allocations : the first $300,000 of assets would go to the Attorney General’s office, and any amount exceeding that would be split 50% to the Attorney General, 25% to the state’s general fund, and 25% to the new reserve fund. Sponsored by Republican Senator Jeff Weninger, the bill will also expand the state’s asset forfeiture laws to explicitly include digital assets. It outlines scenarios under which Arizona could seize digital assets, like cases involving deceased or deported individuals, fugitives, or where ownership cannot be verified despite due diligence. The legislation now requires a majority vote in the 60-member Arizona House to move forward to Governor Katie Hobbs for final approval. This latest development follows a mixed approach from the governor on cryptocurrency legislation. On May 7, Hobbs signed HB 2749 into law , which allows the state to retain unclaimed digital assets and establish a reserve fund, all without using taxpayer money. Under this law, Arizona’s custodians can stake crypto holdings to earn rewards or receive airdrops, which will contribute additional resources to the fund. Hobbs’ explanation for veto (Source: State of Arizona Office of the Governor ) However, Hobbs was more cautious in other areas. She vetoed Senate Bill 1025, which proposed allowing the state treasurer to invest up to 10% of state holdings in Bitcoin and other cryptocurrencies, due to concerns over exposing retirement and general fund assets to volatile digital investments. Hobbs also rejected SB 1373, which proposed a Digital Assets Strategic Reserve Fund, also because of concerns about crypto volatility. Overall, Arizona’s path forward is still cautious and politically divided. Ohio House Passes Pro-Crypto Bill Ohio also recently took a major step toward becoming one of the most crypto-friendly states in the US after its House of Representatives passed the Ohio Blockchain Basics Act (House Bill 116) in a 68-26 vote . The legislation received unanimous bipartisan support in the House’s Technology and Innovation Committee earlier the same day, and now heads to the Senate. The bill was championed by Republican Representative Steve Demetriou, and its main goal is to simplify the use of cryptocurrencies for everyday payments and protect crypto mining operations from excessive government intervention. One of the bill’s core provisions is a tax exemption for cryptocurrency transactions under $200. This threshold will adjust annually based on inflation, indexed to the Consumer Price Index and rounded up to the nearest $5. The state’s tax commissioner will be barred from decreasing the limit in subsequent years. The bill also prohibits state agencies from creating rules that restrict residents from accepting cryptocurrency as payment. To try and support digital asset infrastructure, the legislation includes clear protections for crypto miners. It allows individuals to mine cryptocurrency in residential zones, provided they comply with local regulations, and enables mining businesses to operate freely in areas zoned for industrial use. The bill also prevents the state from singling out crypto mining operations with laws that don’t apply to comparable industries. If local governments attempt to rezone land in ways that could harm crypto businesses, affected operators will have legal recourse to challenge the decisions in court. The Ohio Blockchain Basics Act also tackles regulatory clarity around several key blockchain functions. It specifies that people and businesses do not need a money transmitter license to engage in mining, staking, operating blockchain nodes, swapping one cryptocurrency for another, or developing decentralized applications. It further asserts that crypto mining and staking services should not be considered securities or investment contracts. This is a key distinction that challenges the regulatory stance that was taken by federal agencies under the Biden administration. Finally, the bill gives Ohioans the right to self-custody their digital assets through hardware or self-hosted wallets without interference from the government. Looking ahead, Ohio lawmakers are also considering separate legislation to establish a state-level Bitcoin reserve fund. States considering crypto legislation (Source: Bitcoin Laws ) With over 160 crypto-related bills introduced across 40 US states this year, Ohio’s proactive approach puts it at the forefront of state-led efforts to embrace blockchain innovation. Korea Weighs Won-Based Stablecoin Progress is also being made in other parts of the world. South Korea may be open to the idea of launching a won-based stablecoin, but the country’s central bank is still cautious due to concerns over foreign exchange management. At a press conference, Bank of Korea Governor Rhee Chang-yong acknowledged that issuing a stablecoin pegged to the Korean won could potentially make it easier for users to swap it for US dollar-backed stablecoins. This, he warned, could inadvertently boost demand for dollar stablecoins and complicate the central bank’s efforts to manage foreign exchange markets. Rhee’s remarks come as South Korea’s foreign currency reserves continue to shrink, dropping from $415.6 billion at the end of December to $404.6 billion by the end of May. Meanwhile, the newly elected administration under President Lee Jae-myung is pushing forward with a pro-crypto regulatory framework. On June 10, the ruling Democratic Party introduced the Digital Asset Basic Act , a bill that is designed to legalize stablecoin issuance for companies with at least $368,000 in equity capital. Under the proposal, issuers must maintain adequate reserves and get approval from the Financial Services Commission, South Korea’s primary financial regulator. The Financial Services Commission is also conducting an investigation into local crypto exchanges, focusing on the transaction fees they charge users. This initiative is part of President Lee’s broader campaign promise to reduce trading costs and make crypto more accessible, particularly for younger investors. (Source: Cointelegraph) Globally, stablecoins are dominated by US dollar-backed assets like Tether (USDT) and Circle’s USDC, with market caps of $156 billion and $61 billion respectively. However, the momentum behind non-dollar stablecoins is beginning to grow. Circle’s euro-pegged EURC, for example, saw its market cap surge to $203 million this year, which is a 156% increase since January. This growth coincides with optimism in the stablecoin sector, especially after US lawmakers indicated they would advance the GENIUS Act.

Source: Coinpaper