Senator Wendy Rogers has introduced two bills and a resolution that could allow Arizona voters to change state tax regulations regarding digital assets and blockchain activity.
Arizona Senator Wendy Rogers has submitted three legislative papers to the state Senate aimed at comprehensively reforming how the state taxes digital assets. The proposals , filed ahead of time on Friday, include a bill to exempt virtual currencies from taxation, a resolution to amend the state constitution on property taxes, and a bill to protect blockchain network node operators from local taxes and fees.
SB 1044 proposes a complete tax exemption for virtual currencies, while SB 1045 would prevent counties, cities, and towns from taxing or penalizing entities operating blockchain network nodes. SCR 1003 resolution aims to amend the definition of property tax in the state constitution to clarify regulations related to digital assets.
Of these three bills, only the bill protecting blockchain network nodes can be passed directly by the state legislature. The other two, including the cryptocurrency property tax exemption bill and the constitutional amendment resolution, will need to be approved by Arizona voters through a vote in the general election scheduled for November 2026.
Policy context and prior efforts
Arizona is currently one of the few U.S. states with laws allowing the government to claim ownership of abandoned digital assets for at least three years. This law is part of efforts by cryptocurrency advocates to establish a state digital asset reserve, but other proposals exist that would give the state more authority to invest in cryptocurrencies like Bitcoin.
Senator Rogers was one of the co-sponsors of the Bitcoin reserve fund bill that was vetoed by Arizona Governor Katie Hobbs in May. The senator strongly criticized the decision and pledged to re-introduce the bill in the next legislative session. Cointelegraph contacted Senator Rogers for comment but did not receive a response at the time of publication.
Arizona remains one of the few U.S. states with formal laws establishing a digital asset reserve fund, along with New Hampshire and Texas. While some lawmakers in other states are lobbying for similar bills, many states are proposing different approaches to taxing digital assets.
In Ohio, the House of Representatives passed a bill that could exempt state Capital gains tax on cryptocurrency transactions valued under $200. However, this bill appears to have made little progress since June. Conversely, New York State Representative Phil Steck proposed a 0.2% excise tax on digital asset transactions by state residents; the bill was sent to the House Ways and Means Committee but has seen no progress since August.
At the federal level, Wyoming Senator Cynthia Lummis introduced a bill in July proposing a minimum exemption threshold of $300 or less for digital asset transactions and Capital gains. Lummis also announced on Friday that she will retire from the U.S. Senate in January 2027, raising questions about the future of the crypto-related legislative initiatives she has been pursuing.
Rogers' proposals reflect a growing trend among states to seek distinct approaches to regulating digital assets, amid a still-developing and unclear federal legal framework.
