The proposal requires a comprehensive assessment of feasibility, risks and benefits, setting a precedent for the inclusion of digital assets in retirement portfolios.
The Arizona State Senate has taken a major step to consider including Bitcoin ETFs in state retirement portfolios. A recently introduced 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.
The resolution specifically encourages the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS) to monitor Bitcoin ETFs with the intent of possible inclusion in their investment portfolios.
Resolution to Explore Bitcoin ETFs
The resolution urges ASRS and PSPRS to consider the implications of including a digital asset ETF in their investment portfolios. Additionally, it encourages close monitoring of the evolution of Bitcoin ETFs and other digital asset ETFs, consulting with companies approved by the US Securities and Exchange Commission for information.
The resolution also requires the submission of a full report on the feasibility, risks, and potential benefits of allocating state retirement system funds to Bitcoin ETFs. This report, which includes options and recommendations for safe investments in the digital asset class, must be submitted to the State Treasurer, the President of the Senate and the Speaker of the House of Representatives at least three months before the start of the First Legislature of the Fifty-seventh Legislature Ordinary Session.
Notably, the resolution passed the state Senate by a vote of 16 to 13 in late February. Senators voted along party lines, and all Democrats opposed the measure. Republican state Senator Wendy Rogers, who previously led an effort to establish Bitcoin as legal tender in the state in 2022, voted in favor of the resolution.
The text of the resolution is currently before the state House Ways and Means Committee, where it will be further examined and considered. The committee will evaluate the potential impact and feasibility of including Bitcoin ETFs in the state of Arizona’s retirement plans.
CFTC Chairman Urges Congress to Address Crypto Regulations
Rostin Behnam, chairman of the Commodity Futures Trading Commission (CFTC), reiterated his call for Congress to pass legislation addressing regulatory jurisdictions in the cryptocurrency industry. Before the House Agriculture Committee, Behnam emphasized the need for broader consideration and debate in Congress on important policy issues related to market structure, permitted products, and retail participation.
Behnam highlighted the challenges posed by the rapid evolution of markets, market structure and technology. He also emphasized the importance of ensuring that products offered on the market are suitable for all participants and that appropriate measures are in place to protect clients, consumers and financial markets from fraud, money laundering and other financial crimes.
Additionally, Behnam stated that the CFTC has been active in the digital asset space, taking “numerous actions” related to digital assets. However, according to the president’s statement, the lack of legislation to address the “regulatory gap” in the digital commodity asset spot market remains a concern for the CFTC.
Behnam emphasized the need for Congress to act and grant the CFTC the necessary authority to properly regulate digital assets and protect the American financial system. Behnam also highlighted the success of the CFTC’s whistleblowing program, which has been instrumental in bringing action against misconduct in the commodity digital asset spot market.
However, he expressed concern about potential disruptions and funding mechanisms for the program, urging Congress to provide a long-term solution and clarify allowable uses of the Customer Protection Fund.
By Audy Castaneda
