FRB Partner Kyle Lawrence Featured in Techopedia on Crypto Reserve Funds

Kyle M. Lawrence, Partner and Co-Chair of FRB’s Digital Assets Practice Group, was recently featured in an article by Techopedia examining the emerging trend of cryptocurrency reserve funds at the state level.

In the article, Kyle provided his insights on Arizona’s innovative approach to establishing a strategic crypto reserve fund without using taxpayer money. Kyle explains how funding the reserve through unclaimed property and staking rewards helps mitigate public resistance, especially during periods of economic volatility, stating:

“This can make a difference, especially during periods of economic volatility when allocating public funds to emerging asset classes, like crypto, would likely see strong resistance from the public.”

He also addresses the broader challenges facing states considering similar programs, including regulatory ambiguity, asset management issues, and market risk. “It seems as though state governments are going to be wary of using taxpayer funds for such investments, at least for now,” Kyle observed, highlighting the legal and political complexities surrounding wider adoption.

Read the full Techopedia article here.

To learn more about Kyle’s perspective, or for assistance with the evolving landscape of digital asset adoption in government finance, contact our Digital Assets attorneys here or by filling out the contact form below.

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