The Governor of Arizona Katie Hobbs has spoken a veto for a proposed law that has established a Bitcoin and Digital Assets Reserve Fund run by the State.
On July 1, Governor Hobbs House speaker Steve Montenegro inquired in a letter that she opposed Huis Bill 2324, who wanted to set up a “Digital Assets Reserve Fund” that was funded by a criminal assetfurest statement.
In her Veto letter, Governor Hobbs explained that the bill could discourage local law enforcement from collaborating with the state on digital loss of assets. She also went that the legislation would hinder cooperation between law enforcement by removing seized assets from local jurisdictions.
The Veto account in particular had a rocky legislative journey. It failed at the beginning of May a final vote in parliament before he was revived and eventually passed on a vote from the Senate and finally at the end of June.
Despite the recent legislative support, Governor Hobbs refused to sign it in the law, which marked the third time that she has a veto on a digital asset reserve account this session.
The cautious crypto approach of Democrats
Governor Hobbs’ decision is consistent with her and the broader approach to the Democratic Party for Crypto regulations.
Although she has opposed attempts to position the state as a hub for digital assets, she has supported targeted measures aimed at supervision and consumer protection.
Earlier this year she signed House Bill 2387, which imposes stricter regulations for crypto -atm activities in Arizona. She also approved a separate bill – House account 2749 – which made it possible to make a reserve fund for digital assets under different conditions.
Her approach reflects a broader trend among members of the Democratic Party who have adopted a more conservative position on Crypto.
For example, Connecticut has recently adopted legislation that prohibits government agencies from investing in cryptocurrencies, a movement that is unanimously supported by the legislative power of the democratic majority and signed by Governor Ned Lamont.
Nationally, high -profile Democrats such as Senator Elizabeth Warren Alarms continue to sound about the risks of Crypto.
During recent discussions about the Genius Act, a new bill that is designed to impose guarantees on the Stablecoin sector, Warren pointed out that the collapse of large crypto companies in 2022 was an near-mass financial disaster, because it resulted in a market fall in $ 2 billion.
The debate emphasizes the growing partisan differences on the crypto policy. Democrats are calling for stricter regulations, while Republicans, including President Donald Trump, insist on more open involvement in industry.