News Roundup — Arizona Senate Moves Forward With Bitcoin Reserve Legislation

Major news stories this week;

1. Arizona Senate Moves Forward With Bitcoin Reserve Legislation
2. Stablecoin Volumes Surpassed Visa and Mastercard Combined in 2024
3. Tether’s Stablecoin to Be Integrated Into Bitcoin Lightning
4. Hong Kong SFC Grants First Crypto Licenses of 2025
5. El Salvador Congress Amends Bitcoin Laws to Meet IMF Agreement on Crypto Exposure

Story Summaries;

1. The Arizona Senate has advanced a bill allowing public funds and pensions to invest in Bitcoin through a Strategic Bitcoin Reserve. The bill, which passed the Finance Committee, would let government entities store up to 10% of their capital in Bitcoin and other digital assets, potentially leading to wider cryptocurrency adoption among U.S. states. The move could inspire other states, like Texas and Pennsylvania, to follow suit.
2. In 2024, stablecoin transfer volumes reached $27.6 trillion, surpassing Visa and Mastercard combined by 7.7%. The surge was driven by increased bot activity, particularly on Solana and Base, which accounted for 70% of the volume. While Tether (USDT) maintained dominance, Ethereum and Tron still led stablecoin networks, though their market share slightly declined as other networks gained momentum.
3. Tether's USDT stablecoin is being integrated into the Bitcoin Lightning Network through the Taproot Assets protocol, enabling merchants to accept USDT alongside Bitcoin. This integration expands USDT’s use in global transactions, particularly in emerging markets, as Tether continues to grow its presence across multiple blockchains.
4. On January 27, 2025, Hong Kong's Securities and Futures Commission (SFC) issued its first crypto licenses of the year to two exchanges, PantherTrade and YAX. This brings the total number of crypto licenses granted since mid-2024 to seven. The SFC’s licensing drive continues to regulate the virtual asset market, with a focus on safeguarding client assets and enhancing cybersecurity. Currently, only four cryptocurrencies - Bitcoin, Ether, Avalanche, and Chainlink are legally available for trading in Hong Kong.
5. El Salvador's Congress amended its Bitcoin laws to align with IMF conditions in a $1.4 billion loan agreement, removing the mandate for businesses to accept Bitcoin while keeping it as legal tender. Despite this, the country continues to expand its Bitcoin reserves and plans more acquisitions in 2025. The Chivo wallet will be phased out in favor of private-sector alternatives. Meanwhile, U.S. states like New Hampshire and North Dakota are proposing Bitcoin reserve legislation.

And that’s all for last week’s news! Wishing you a great week ahead!