Arizona GOP Pushes Forward ‘Magic Money’: Bills to Officially Embrace Cryptocurrency

In Arizona, Republican lawmakers are advancing measures to recognize cryptocurrency as “legal tender” and establish a “strategic reserve” for digital assets, despite warnings about market volatility and the lawmakers’ ties to the cryptocurrency industry. These proposals are part of a broader GOP initiative to legitimize cryptocurrencies within the state.

During a recent hearing, Sen. Mark Finchem, R-Prescott, humorously suggested that now would be a good time to invest in XRP and Bitcoin, eliciting laughter from his colleagues on the House Commerce Committee as he supported Senate Bill 1373. This legislation is similar to another Republican-backed bill discussed earlier, showing the party’s collective push to embrace cryptocurrencies.

Arizona’s bills align with initiatives in 22 other states that have moved to create strategic reserves for cryptocurrencies, facilitating investments from state treasurers or pension funds. This trend coincides with former President Donald Trump’s advocacy for similar federal proposals, reflecting growing political support for digital assets.

The proposed Arizona legislation would create a “digital assets strategic reserve fund,” financed by the state budget and seized cryptocurrencies. The state treasurer would oversee this fund, which could allocate up to 10% of its value annually for investments.

While cryptocurrencies, unlike traditional commodities such as gold and oil, lack intrinsic value and primarily serve speculative purposes, concerns loom large about their use. Critics highlight their potential role in illegal activities, including money laundering and tax evasion.

Sen. Finchem has openly supported XRP, labeling it his “favorite” cryptocurrency, and has proposed making it legal tender in Arizona. His commitment to this digital asset was also evident at a recent event hosted by Mel Carmine, who claims divine inspiration for promoting XRP, despite accusations of fraudulent schemes linked to him.

However, local county treasurers expressed their inability to implement any crypto payment systems. Megan Kintner, a lobbyist for the Arizona Association of Counties, noted the volatility of cryptocurrencies as a significant concern, stating that their values may fluctuate significantly before payments can be processed.

Despite these warnings, GOP lawmakers are undeterred, eager to embrace technological advancements. Rep. Walt Blackman, R-Snowflake, likened cryptocurrencies to debit cards, admitting his lack of understanding but suggesting that they could represent the future of currency.

Finchem’s proposal to classify cryptocurrencies as legal tender has passed the committee stage along party lines and is set to move to the full House of Representatives for further consideration. Should it pass the House, it would be submitted to Gov. Katie Hobbs for approval.

Additionally, strategic bitcoin reserve bills that aim to dismantle federal environmental protections also passed through committee along similar party lines, reflecting the intertwining of cryptocurrency initiatives with broader GOP agendas.