TL;DR
- Arizona Senator files bills to exempt crypto from state tax and protect blockchain nodes from local fees.
- The measures could advance in 2026, with one requiring a public constitutional amendment vote.
- This push for a crypto-friendly legal framework follows a trend of state-level regulatory action in the US.
Arizona is once again drawing attention to the digital asset debate in the United States. State Senator Wendy Rogers has introduced two bills and one constitutional resolution aimed at redefining how the state treats cryptocurrencies and blockchain operations under its tax code. The proposals seek to remove tax burdens on both virtual currencies and blockchain nodes, opening the door for Arizona voters to decide on these changes in the 2026 general election.
Rogers prefiled the measures before the Arizona Senate, including Senate Bill 1044 (SB 1044), which would exempt virtual currency from state taxation, and Senate Bill 1045 (SB 1045), which would prohibit cities, counties, and towns from imposing any tax or fee on entities operating blockchain nodes. A third measure, Senate Concurrent Resolution 1003 (SCR 1003), would amend the state constitution to explicitly exclude digital assets from the definition of property tax.
According to the proposal, SB 1045 could move through the legislature, while SB 1044 and SCR 1003 would require voter approval in the next general election. Together, the bills aim to shield blockchain activity and crypto holdings from state-level taxation, setting a precedent that could influence other states exploring similar reforms.
A push for clarity in digital asset policy
Arizona stands among a small group of U.S. states actively exploring crypto-friendly legislation. The state already recognizes digital assets within its legal framework, including a provision that allows the government to claim ownership of abandoned digital assets after three years. This measure, originally supported by crypto advocates, was intended to create a digital asset reserve under state control.
Senator Rogers has consistently supported the expansion of such policies. Earlier this year, she co-sponsored a Bitcoin reserve bill, designed to let the state treasury hold Bitcoin as part of its asset diversification plan. Governor Katie Hobbs vetoed the measure in May, arguing it lacked sufficient fiscal safeguards. Rogers condemned the veto and announced her intention to reintroduce the bill in the next session, reaffirming her pro-crypto stance.
Arizona’s legislative efforts mirror developments in other parts of the country. Ohio has advanced a bill that would exempt crypto transactions under $200 from capital gains taxes, while New York lawmakers proposed a 0.2% excise tax on digital asset transfers. Neither proposal has moved forward since mid-year.
At the federal level, Senator Cynthia Lummis of Wyoming introduced a draft bill to create a de minimis exemption for transactions and capital gains under $300, an initiative designed to simplify compliance for small users. Lummis, a long-time advocate of cryptocurrency regulation, recently announced her plan to retire from the U.S. Senate in January 2027.
The debate in Arizona underscores a broader shift in how states approach digital asset taxation and blockchain regulation. While federal guidance remains fragmented, local initiatives are defining the practical rules for crypto adoption. Rogers’s proposals, if enacted, could make Arizona one of the most permissive jurisdictions for blockchain operations in the United States — and a testing ground for integrating crypto policy into state governance.
