Regulatory Developments: Arizona Proposes No Taxes on Crypto

Arizona state Senator Wendy Rogers has introduced two bills and a resolution aimed at changing the state's taxation laws on digital assets. As reported by Cointelegraph, the proposed legislation includes SB 1044, which seeks to exempt virtual currency from taxation, and SB 1045, which would prevent counties, cities, and towns from taxing or fining entities operating blockchain nodes.

Additionally, SCR 1003 aims to amend the state constitution to specifically exclude virtual currency from property tax. However, the crypto tax bill and resolution would require a voter approval during the upcoming general election in November 2026.

Arizona is notable for its existing law that allows the government to claim ownership of abandoned digital assets after three years, which aligns with the state's efforts to establish a digital asset reserve, similar to initiatives in New Hampshire and Texas.

This proactive regulatory stance could attract crypto businesses and investors, potentially influencing the broader regulatory landscape across the United States.