Market Watch
Things to Watch This Week (May 5 - May 10)
May 7 - U.S. FOMC Interest Rate Decision
The Federal Reserve is widely expected to hold rates steady at this Wednesday’s meeting, as labor markets remain resilient. The market will focus on Chair Powell’s remarks for any clues on the timing and likelihood of rate cuts later this year.
Random Musing This Week (May 5 - May 10)
Arizona’s Bitcoin Reserve Push – One Bill Vetoed, One Still in Play
Arizona positioned itself at the forefront of digital asset policy last month, introducing two crypto-related bills that captured attention.
SB1025 – Bitcoin Reserve Bill
Proposal: Would allow the state treasury and public retirement systems to allocate up to 10% of reserve funds into Bitcoin.
Status: Vetoed by Governor Katie Hobbs on May 3. She cited concerns over investing public funds in “unproven” and volatile assets like cryptocurrency.
Quote: “Arizona’s pension system is among the strongest in the nation because of disciplined investing—not speculative bets,” Hobbs noted in her veto letter.
SB1373 – Strategic Digital Assets Reserve Bill
Proposal: Allows digital assets (e.g., crypto seized in criminal investigations) to be retained in a state-managed emergency reserve fund.
Status: Passed both chambers and awaiting final vote or executive action. Unclear if the governor will also veto this.
While the SB 1025 veto halts Arizona from becoming the first U.S. state to hold Bitcoin as a treasury asset, the momentum behind state-level Bitcoin reserve legislation continues. The U.S. Strategic Bitcoin Reserve Tracker shows that several other states (including Texas, Oklahoma, and Florida) are actively exploring or implementing similar initiatives. More developments are likely to follow.
Recap of Top Stories (Apr 28 – May 2)
Interesting
Morgan Stanley eyes crypto rollout for E*Trade platform
Commentary: Banking giant Morgan Stanley reportedly plans to list cryptocurrencies on its E*Trade investment brokerage and trading platform. According to a May 1 Bloomberg report, the firm intends to list crypto assets on E*Trade in 2026. The plan is still in early development, and the bank is said to be exploring partnerships with established crypto firms to power the service.
Sam Altman’s eye-scanning crypto project World launches in US
Commentary: OpenAI CEO Sam Altman’s crypto-tied digital identity project World, formerly Worldcoin, has made its US debut in six cities. The project, which aims to verify humans in the age of artificial intelligence, is initially coming to what it calls the “key innovation hubs” of Atlanta, Austin, Los Angeles, Miami, Nashville and San Francisco, according to an April 30 announcement.
The firm had previously skirted launching in the US due to regulatory concerns over offering a token, fears now seemingly allayed with the crypto-friendly Trump administration.
North Carolina House passes state crypto investment bill
Commentary: North Carolina’s House of Representatives has passed a bill allowing the state’s treasurer to invest public funds in approved cryptocurrencies, which will now head to the Senate. The House passed the Digital Assets Investment Act, or House Bill 92, on its third reading on April 30 by a vote of 71 to 44.
The investments can only be made after obtaining an independent third-party assessment confirming that the crypto holdings are maintained with a secure custody solution and risk oversight and regulatory compliance standards are met.
US DOJ requests 20-year sentence for Celsius founder Alex Mashinsky
Commentary: Alex Mashinsky, the founder and former CEO of the now-defunct cryptocurrency lending platform Celsius, faces a 20-year prison sentence as the US Department of Justice (DOJ) seeks a severe penalty for his role in a multibillion-dollar fraud.
“The Court should sentence Alexander Mashinsky to twenty years’ imprisonment as just punishment for his years-long campaign of lies and self-dealing that left in its wake billions in losses and thousands of victimized customers,” the DOJ stated.
SEC delays decisions on XRP and Dogecoin ETFs
Commentary: In filings made on the SEC’s website on Tuesday, the agency said it would wait until June to decide next steps for the Bitwise Dogecoin ETF and the Franklin XRP Fund. Multiple firms have been looking to launch several crypto ETFs over the past few months amid a more friendly crypto regulatory shift at the SEC.
Coinbase to launch yield-bearing Bitcoin fund for institutions
Commentary: Coinbase, the world’s third-largest cryptocurrency exchange by volume, is launching the Coinbase Bitcoin Yield Fund on May 1, aiming to offer Bitcoin exposure for institutional investors outside the US.
The fund targets an annual net return of 4% to 8% on Bitcoin holdings, according to an April 28 blog post by Coinbase. The yield will be generated through a cash-and-carry strategy, through the difference between spot Bitcoin prices and derivatives.
Arizona legislature passes Bitcoin reserve bills, moving closer to stockpiling crypto
Commentary: Lawmakers in the Arizona House of Representatives passed two bills that could allow the state to adopt a reserve using Bitcoin or other cryptocurrencies. In a third reading on April 28 of Senate Bill 1025 (SB1025), a proposal to amend Arizona’s statutes to allow for a strategic BTC reserve, 31 members of the Arizona House voted in favor of the bill, with 25 opposed.
The approvals bring the bills closer than any other state-level initiative in the US to getting a cryptocurrency or Bitcoin strategic reserve signed into law. Similar legislation proposed in New Hampshire passed the state’s House in April and is expected to head to the Senate for a full floor vote soon.
Mastercard moves to integrate stablecoins into global payments network
Commentary: Mastercard is moving to allow consumers to spend and merchants to receive payments using stablecoins. Consumers will be able "to earn rewards, pay, and spend the stablecoins in their crypto wallets via traditional cards at the over 150 million merchant locations accepting Mastercard globally, as well as withdraw stablecoins into their bank accounts with Mastercard Move."
In addition to partnering with cryptocurrency exchange OKX to release a card, Mastercard said it is working closely with stablecoin issuers Circle and Paxos to enable merchants to receive payments in stablecoins.
Upcoming Market Events
May 7 - U.S. FOMC Interest Rate Decision
May 13 - U.S. CPI (Apr)
May 15 - U.S. Retail Sales (Apr)
May 30 - BTC CME May (BTCK25) Options Expiry