In a significant legislative push, Arizona State Senator Wendy Rogers has prefiled three pieces of legislation aimed at creating a tax-friendly environment for cryptocurrency and blockchain technology within the state. The proposals, introduced on December 22, 2025, seek to exempt virtual currency from state taxation, protect blockchain node operators from local taxes and fines, and clarify the tax treatment of digital assets in the state constitution.
The core legislative package consists of SB 1044, SB 1045, and SCR 1003. SB 1044 proposes to amend state statutes to exempt virtual currency from taxation. SB 1045 would prohibit counties, cities, and towns from imposing any tax or fee on a person or entity running a node on blockchain technology. SCR 1003 is a resolution that aims to amend the Arizona constitution to specifically exclude virtual currency from property tax, mirroring the statutory language of SB 1044.
The path to enactment varies for each proposal. While the blockchain node bill (SB 1045) may move through the standard state legislature process, the crypto tax bill (SB 1044) and the constitutional amendment (SCR 1003) would require approval by Arizona voters during the next general election in November 2026.
This initiative is part of a broader effort by Senator Rogers, who was a co-sponsor of a Bitcoin reserve bill vetoed by Arizona Governor Katie Hobbs in May 2025. Rogers condemned that veto and pledged to refile the bill. Arizona is already one of the few U.S. states, alongside New Hampshire and Texas, with a law allowing the government to claim ownership of abandoned digital assets after three years, part of earlier efforts to establish a state digital asset reserve.
The proposal places Arizona in a growing national competition to attract blockchain businesses and talent, following similar moves by states like Wyoming and Texas. The debate is expected to center on balancing the potential for economic growth and technological leadership against concerns over state revenue and fiscal sustainability. The outcome in Arizona could serve as a pivotal test case, potentially inspiring similar legislation in other states or providing a model for future crypto-friendly policy.
