Arizona’s legislature is taking bold steps to position the state as a cryptocurrency-friendly hub with new measures aimed at exempting digital assets from property taxes. On January 27, 2026, the Senate Finance Committee advanced two key propositions – Senate Concurrent Resolution 1003 (S.C.R. 1003) and Senate Bill 1044 (S.B. 1044) – as part of the broader effort to support crypto adoption.
What the Legislation Proposes
S.C.R. 1003 proposes a constitutional amendment to define digital currencies and explicitly prohibit property tax on such assets. If enacted, this measure will be presented to voters during the November ballot. S.B. 1044 complements this by aligning state laws with that exemption while defining “virtual currency” as a medium of exchange distinct from traditional fiat currencies.
These bills were spearheaded by Senator Wendy Rogers (R-Flagstaff), a staunch advocate for cryptocurrency. Senator Rogers has previously introduced similar crypto-focused legislation, such as the Arizona Strategic Bitcoin Reserve Act, which sought to allow state treasurers to allocate 10% of public funds into Bitcoin.
A History of Challenges and Opposition
Despite the legislative momentum, Governor Katie Hobbs has vetoed several crypto-related bills in recent years. For instance, in 2025, she rejected the Strategic Bitcoin Reserve Act, as well as measures to establish a Digital Assets Strategic Reserve Fund and allow state agencies to accept crypto payments for taxes and fines. Hobbs expressed concerns over cryptocurrency market volatility and its fit for public funds.
However, her administration has been open to modernizing crypto-related laws in specific cases. For instance, House Bill 2749 enabled unclaimed cryptocurrency to be held in digital form instead of being liquidated, signifying a step toward regulatory acknowledgment of digital assets.
Arizona’s Growing Crypto Landscape
While Arizona lawmakers continue to push for tax exemptions and crypto adoption, these measures align with a global trend of governments exploring digital assets and blockchain technology. If successful, these bills could make Arizona one of the most crypto-friendly states in the U.S.
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