- Arizona lawmakers filed bills seeking to exempt crypto and blockchain nodes from taxes.
- Two measures go to voters in 2026 while the node bill advances through lawmakers.
- Data cited shows crypto-friendly states often record stronger investment inflows.
Arizona has returned to the center of the U.S. digital asset debate after a state lawmaker introduced proposals that could remove major tax burdens on cryptocurrencies and blockchain operations. The measures would reshape how Arizona treats virtual currencies and blockchain infrastructure under state law while sending key decisions to voters in 2026.
State Senator Wendy Rogers prefiled two bills and one constitutional resolution before the Arizona Senate. Together, the proposals target state and local taxes tied to digital assets and blockchain nodes. Lawmakers framed the effort as part of a broader push to give clarity to crypto regulation while positioning Arizona as a competitive destination for blockchain activity.
The package includes Senate Bill 1044, Senate Bill 1045, and Senate Concurrent Resolution 1003. Each proposal addresses a different layer of the tax framework. The measures could advance on different timelines, with some requiring voter approval during the next general election.
Bills Aim to Redefine Crypto Tax Treatment
Senate Bill 1044 would exempt virtual currencies from state taxation if voters approve the measure in 2026. The bill targets taxes applied to digital assets held or transferred within Arizona. Supporters say the change would remove uncertainty for individuals and businesses that hold cryptocurrencies.
Senate Concurrent Resolution 1003 would amend the Arizona Constitution to exclude digital assets from the definition of property subject to state property tax. Because it changes the constitution, the resolution would also appear on the 2026 ballot. Voters would decide whether digital assets receive permanent protection from property taxation.
Both measures place the final decision in the hands of Arizona voters. If approved, the exemptions would apply statewide. Lawmakers described the approach as a way to secure long-term certainty rather than relying on statutory changes alone.
Blockchain Node Protections Move Separately
Senate Bill 1045 takes a different path. The bill would prohibit cities, counties, and towns from imposing taxes or fees on entities that operate blockchain nodes. Unlike the other proposals, SB 1045 could advance through the legislature without voter approval.
The measure focuses on blockchain infrastructure rather than asset ownership. Node operators validate transactions and maintain distributed networks. Lawmakers backing the bill said local fees could discourage operators from setting up in Arizona.
If passed, SB 1045 would create a uniform statewide rule. Local governments would lose the authority to tax or charge fees on node operations. The bill could move independently even if voters reject the other tax measures.
Arizona Joins Broader State-Level Crypto Push
Arizona already ranks among U.S. states that actively pursue digital asset policies. The state has passed laws that allow abandoned cryptocurrencies to be claimed as unclaimed property. Those steps align Arizona with states such as New Hampshire and Texas.
Related: Arizona Governor Rejects State Crypto Asset Reserve Bill
Elsewhere, states have taken varied approaches. New Hampshire’s governor recently signed a crypto reserve bill into law. Ohio’s House passed legislation to exempt crypto transactions under $200 from capital gains taxes, though the bill stalled in mid-2024. New York proposed a 0.2% excise tax on digital asset transactions, but the bill has not advanced.
Data cited by the Chamber of Digital Commerce shows crypto-friendly jurisdictions often record 15 to 25 percent higher investment inflows. Arizona lawmakers referenced such figures while discussing the potential economic effects of tax relief.
At the federal level, Senator Cynthia Lummis drafted a bill in July 2024 proposing a de minimis exemption for crypto transactions and gains up to $300. She later announced plans to retire in January 2027. These parallel efforts reflect growing interest in tax clarity across multiple levels of government.
