Arizona is once again at the forefront of cryptocurrency legislation as State Lawmaker Wendy Rogers has proposed a series of measures aimed at barring taxes on digital assets and blockchain technology. The proposals include two bills and one resolution that, if enacted, could significantly alter Arizona's taxation laws concerning cryptocurrencies and blockchain.

Rogers' initiative seeks to provide clarity and potentially incentivize the growth of the cryptocurrency and blockchain industries within the state. By removing tax burdens, Arizona could become a more attractive destination for crypto-related businesses and investors.

It's not the first time Arizona has considered crypto-friendly legislation. In 2018, a bill was proposed that would allow residents to pay their taxes with cryptocurrencies. The bill passed the Senate, signaling the state's early interest in integrating digital currencies into its financial systems. More recently, Governor Katie Hobbs signed a bill in May 2025 to establish a cryptocurrency reserve fund and account for unclaimed digital currency assets, indicating a continued effort to create a regulatory framework for virtual currencies.

In July 2022, Arizona also passed H.B. 2204, which excludes the value of airdrops from state taxable income and allows the deduction of gas fees. This law ensures that recipients of airdropped digital assets do not have taxable income resulting from the airdrop.

These previous legislative efforts, combined with Rogers' new proposals, demonstrate a sustained interest in fostering a crypto-friendly environment in Arizona. The state aims to strike a balance between encouraging innovation and protecting consumers, as seen in the law that regulates cryptocurrency ATM operators to protect users from scams and prohibits municipalities from regulating computational power in a home.

The potential impact of Rogers' proposals is substantial. Barring taxes on crypto and blockchain could attract new businesses, create jobs, and position Arizona as a leader in the burgeoning digital economy. However, it also raises questions about the potential loss of tax revenue and the need for careful consideration of the long-term financial implications. As the discussion around these proposals unfolds, Arizona finds itself at the center of a national conversation about the role of cryptocurrency and blockchain in the future of finance.