Arizona state Sen. Wendy Rogers has introduced a legislative package aimed at reshaping how digital assets are treated under state and local tax laws, renewing a broader push by some lawmakers to position Arizona as a jurisdiction with clearer and more favorable rules for cryptocurrencies and blockchain infrastructure.
In bills filed with the Arizona Senate, Rogers proposed amending state statutes to exempt virtual currency from taxation (SB 1044), prohibiting counties, cities and towns from taxing or fining entities that operate blockchain nodes (SB 1045), and promoting a constitutional amendment to clarify how the digital property tax framework (003SCR’s 03SCR) fits into Arizona.
The measures take different procedural paths. SB 1045, which focuses on protecting blockchain node operators, could move through the legislature and become law if approved by lawmakers and signed by the governor.
In contrast, SB 1044 and SCR 1003 are tied together and will ultimately require voter approval during the next general election in November 2026.
SCR 1003 proposes to amend the Arizona Constitution to explicitly exclude virtual currency from property taxation. SB 1044 would mirror this change in state statutes and add language clarifying that digital assets are not subject to estate tax. Under Arizona law, changes to constitutional tax definitions must be approved by voters, making the ballot a key obstacle to the broader tax exemption effort.
SB 1045 addresses a narrower but still hotly debated issue: the treatment of blockchain nodes at the local level. The bill would prevent cities, towns and counties from imposing “a tax or fee on a person running a node on blockchain technology,” effectively preventing local governments from singling out node operators through taxes or fines.
Arizona is one of many states that embrace bitcoin and crypto
Arizona’s legislative activity around digital assets builds on previous efforts that have already placed the state among a small group with crypto-specific laws on the books. Arizona is one of the few US states that allows the government to take custody of digital assets deemed abandoned after three years.
This framework emerged from earlier attempts by crypto advocates to establish a digital asset reserve at the state level and has since become part of a broader debate about how much authority states should have to hold or invest in cryptocurrencies such as bitcoin.
Rogers previously co-sponsored a bitcoin reserve bill that was vetoed by Arizona Governor Katie Hobbs in May. After the veto, Rogers criticized the decision and said she planned to reintroduce similar legislation in a future session.
Arizona’s proposal arrives as states across the country experiment with different approaches to digital asset policy. New Hampshire and Texas have also passed laws related to digital asset reserves, while other states have focused on narrower tax issues.
Lawmakers in Ohio introduced a bill that would exempt cryptocurrency transactions under $200 from capital gains tax, though it has stalled since June.
In New York, a proposal to impose a 0.2% excise tax on digital asset transactions was referred to committee earlier this year and has not advanced.
At the federal level, Senator Cynthia Lummis of Wyoming introduced draft legislation proposing a de minimis exemption for digital asset transactions and capital gains of $300 or less.
Lummis announced Friday that she plans to retire from the U.S. Senate in January 2027.
Bitcoin is trading at $87,341, down 3% over the past 24 hours. Its 24-hour trading volume is $46 B. The price is 3% below its 7-day high of $90,031 and 1% above its 7-day low of $86,806.
With a circulating supply of 19,966,021 BTC (out of a maximum of 21 million), Bitcoin’s market cap is approximately 1.74T, reflecting a 3% drop in the last 24 hours.