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Arizona lawmakers are back with a proposal that could remove state taxes on cryptocurrency altogether.
State Senator Wendy Rogers has introduced a set of bills and a constitutional resolution that aim to change how Arizona treats digital assets, from everyday crypto transactions to blockchain infrastructure.
If approved, the move would place Arizona among the most crypto-friendly states in the U.S. when it comes to taxation.
Huge moves! Here’s what you should know.
Arizona Pushes to Exempt Crypto From State Taxes
The effort centers on SB 1044, a bill that would exempt virtual currency from taxation under Arizona law.
The proposal defines virtual currency as “a digital representation of value that functions as a medium of exchange, a unit of account and a store of value other than a representation of the United States dollar or a foreign currency.”
To lock in that change, Rogers also filed SCR 1003, a resolution that would amend Arizona’s constitution to explicitly exclude digital assets from property tax. Unlike regular legislation, this measure would need approval from voters in the November 2026 general election.
Together, the two measures aim to remove much of the tax burden tied to holding, using, or earning crypto at the state level.
Protection for Blockchain Node Operators
A third proposal, SB 1045, focuses on blockchain infrastructure. The bill would prevent cities, counties, and towns from imposing “a tax or fee on a person that runs a node on blockchain technology.”
This measure could move forward through the state legislature without a public vote, making it the most immediate of the three proposals.
For node operators and mining firms, local taxes and fees are often cited as a major cost factor. Removing them could make Arizona more attractive for companies deciding where to expand or set up operations.
Part of a Larger Crypto Policy Shift
Arizona’s move comes as states across the U.S. test different approaches to crypto regulation and taxation. While Texas has pushed forward with a strategic Bitcoin reserve, other states like Ohio and New York have explored narrower tax changes.
At the same time, lawmakers in Washington have floated a bipartisan discussion draft aimed at aligning crypto taxes with traditional financial assets, signaling growing momentum around modernizing digital asset tax rules at the federal level.
Rogers’ proposals stand out because they aim to eliminate state-level crypto taxes rather than adjust them.
The path ahead is still uncertain. A similar Bitcoin reserve bill backed by Rogers was vetoed earlier this year by Governor Katie Hobbs, and voter approval remains a major hurdle.
Still, Arizona has now placed itself at the center of the growing debate over how digital assets should be taxed – and whether states should compete to attract the next wave of crypto infrastructure.