Legislative Process Achieves Breakthrough Progress
In a recent vote, Arizona's Senate Finance Committee passed both SB 1044 and SCR 1003 by a narrow margin. This package of proposals, introduced by Senator Wendy Rogers, marks a significant step forward in the state's regulation of digital assets.
Key Tax Policy Adjustments
The core of this proposal lies in redefining the legal status of virtual currency and removing it from the scope of property tax. According to SB 1044, virtual currency will be recognized as a digital asset serving as a medium of exchange, unit of account, and store of value, though it explicitly excludes the U.S. dollar and foreign currencies.
Constitutional Amendment Process Initiated
The passage of SCR 1003 means that if the legislation ultimately succeeds, voters will decide in November whether to enshrine this tax exemption into the state constitution. This dual-protection mechanism aims to ensure long-term policy stability and legal enforceability.
Gubernatorial Stance and Policy Outlook
Notably, despite Governor Katie Hobbs' 2025 veto of several crypto-related bills—including the Bitcoin strategic reserve plan and the proposal allowing tax payments in cryptocurrency—this exemption proposal has now entered the Senate Rules Committee review stage, demonstrating the legislature's ongoing interest in policy adjustments in this sector.