Arizona Senate Advances Resolution to Explore Bitcoin ETFs in State Retirement Portfolios
The Arizona state Senate has taken a significant step toward considering the inclusion of Bitcoin ETFs in state retirement portfolios. A recently advanced resolution encourages lawmakers and state retirement fund managers to explore allocating some of these portfolios to Bitcoin ETFs, which have demonstrated success among institutional and retail investors.
Resolution To Explore Bitcoin ETFs
The resolution urges the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS) to monitor Bitcoin ETFs with the intent of potential inclusion in their investment portfolios. It specifically encourages them to consider the implications of including a digital asset ETF in their investment portfolios and consult with firms approved by the US Securities and Exchange Commission for insights.
- The resolution requires the submission of a comprehensive report on the feasibility, risks, and potential benefits of allocating state retirement system funds into Bitcoin ETFs.
- The report must be submitted to the State Treasurer, President of the Senate, and Speaker of the House of Representatives at least three months before the beginning of the Fifty-Seventh Legislature’s First Regular Session.
The resolution passed in the state Senate with a 16-13 vote at the end of February. It is currently before the state House Ways and Means Committee for further examination and consideration.
CFTC Chair Urges Congress To Address Crypto Regulations
Rostin Behnam, the Chair of the Commodity Futures Trading Commission (CFTC), has reiterated his call for Congress to pass legislation that addresses regulatory jurisdictions in the cryptocurrency industry. He emphasized the need for broader congressional consideration and debate on important policy questions related to market structure, permissible products, and retail participation.
Behnam highlighted the challenges posed by the rapid evolution of markets, market structure, and technology. He emphasized the importance of ensuring that the products offered in the market are suitable for all participants and that appropriate measures are in place to protect customers, consumers, and the financial markets from fraud, money laundering, and other financial crimes.
The CFTC has taken numerous actions related to digital assets. However, Behnam expressed concern about the lack of legislation addressing the regulatory gap in the spot market for digital commodity assets.
- Behnam called on Congress to give the CFTC the necessary authority to regulate digital assets properly and protect the US financial system.
- He also highlighted the success of the CFTC’s whistleblower program in bringing actions against misconduct in the digital commodity asset spot market.
Behnam expressed concerns about potential disruptions and funding mechanisms for the whistleblower program. He urged Congress to provide a long-term fix and clarify the permitted uses of the Customer Protection Fund.
Hot Take: Arizona Paves the Way for Bitcoin ETFs in State Retirement Portfolios
The recent resolution passed by the Arizona state Senate marks a significant development in the potential inclusion of Bitcoin ETFs in state retirement portfolios. This move demonstrates recognition of Bitcoin’s success among institutional and retail investors and aims to explore its viability as an investment option for state retirement funds.
Meanwhile, CFTC Chair Rostin Behnam’s call for Congress to address crypto regulations highlights the need for comprehensive legislation to govern the cryptocurrency industry. With markets evolving rapidly and new challenges emerging, it is crucial to establish clear regulatory frameworks that protect participants and maintain market integrity.
Both these developments reflect growing acceptance and understanding of cryptocurrencies in traditional financial systems. As more institutions and regulators engage with digital assets, it is expected that further progress will be made in shaping the future of the crypto industry.
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