The state of Arizona is slowly but surely rolling out the red carpet for widespread crypto adoption as its senator looks to increase crypto’s utility incrementally.
To say Arizona Senator Wendy Rogers is bullish on crypto would be an understatement. The senator has submitted two more cryptocurrency bills for passing by the Arizona Senate and Arizona House of Representatives. This follows last week’s submission to make bitcoin legal tender in the Grand Canyon state.
What do the new bills propose?
The two new bills are SB1127 and SB1128. SB1127 deals with amendments to Section 1, Title 35, chapter 1, article 3 of the Arizona Revised Statutes. It proposes that a state agency be allowed to enter into an agreement to receive payments for fines, civil or other penalties, rent, rates, taxes, fees, charges, revenue, and other obligations. The person paying is liable for interest, payment, and penalties until the state agency receives the full amount. SB1127 builds on the foundation of a 2018 bill that permitted state residents to pay income taxes in specific cryptocurrencies.
SB1128 proposes a tax exemption for “virtual currency,” which is defined as a representation of value that is not any fiat currency and is a unit of account, store of value, or a medium of exchange.
SB1127 will need to be approved by the Arizona Senate and the Arizona House of Representatives. The second will depend on the outcome of a future general election, where voters would have their say regarding the exemption of virtual currency from the IRS-deemed property tax scheme.
SB1127 will allow payments to be made in bitcoin, Litecoin, Ethereum, and BitcoinCash, amongst others.
Rolling out the red carpet for crypto
A bill called SB1341 was issued last week by Senator Rogers to make BTC legal tender. This could see citizens receiving salaries in bitcoin and companies using it as they see fit. It may prove an uphill battle for Rogers, since the U.S. Constitution does not offer leeway for individual states to use anything except the U.S. dollar. The Coinage Clause authorizes Congress to define “legal tender” exclusively. According to a tweet, Rogers said, “I want to make Arizona the most Bitcoin and crypto-friendly state.” She faces the prospect of Texas gubernatorial candidate Don Huffines in the crypto race, who has vowed to make bitcoin legal tender, should he get voted into office. It would be interesting to see whether either state purchases its own bitcoins like President Nayib Bukele and whether it can tolerate crypto’s inherent volatility.
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