With varying bitcoin reserve bills being introduced in 24 U.S. states, according to BNN Bloomberg, such measures were approved in both the Arizona House and Senate this week, along with three more bitcoin- and cryptocurrency-related bills.
The state of Arizona passed Senate Bill (S.B.) 1025 this session on a 5-2 vote, as previously reported by Bitcoin News in January, permitting “up to 10%” of government or public fund’s capital to be invested in bitcoin and other digital assets.
The bill was sponsored by Sen. Wendy Rogers (R) and Rep. Jeff Weninger (R), and states,
“This act may be cited as the ‘Arizona Strategic Bitcoin Reserve Act.‘”
The Arizona House of Representatives also voted 17-12 to move forward S.B. 1373, sponsored by Sen. Mark Finchem (R), which similarly proposed both purchases of digital assets, and also limits the amount which can be invested.
The Digital Watch reported on Thursday,
“SB1373 includes risk management provisions, such as limiting the Treasurer’s ability to invest more than 10% of the fund in any single year.”
Most proposed bills this session across the U.S. were specific to “strategic reserve” bills, such as moved ahead recently in Oklahoma, Texas, and Utah, failing in more states than passing, including Montana, North Dakota, South Dakota, Pennsylvania and Wyoming, Mitrade reports.
However, Arizona lawmakers seem to be leading the states in their bitcoin approach by moving forward with other more nuanced, proactive cryptocurrency adoption bills.
S.B. 1128, the Cryptocurrency Payment Authorization bill, according to Duane Morris Government Strategies, “aims to modernize the state’s payment systems by allowing state agencies to accept cryptocurrency for various obligations such as fines, taxes, fees, and penalties.“
SB 1062, the Bitcoin as Legal Tender bill, states that it will define legal tender “to include cryptocurrency and applies the definition to all Arizona Revised Statutes. …
“Statute defines legal tender as a medium of exchange, including specie, that is authorized by the U.S. Constitution or U.S. Congress to pay debts, public charges, taxes and dues,” the bill’s text continued.
While the topic of whether capital gains tax liabilities on bitcoin will ever be removed at the federal level remains moot for now, the proposed Arizona legislation states,
“Any gains or losses derived from the exchange of one kind of legal tender for another is exempt from individual and corporate state income tax …” meaning that the state will not charge residents taxes on profitable cryptocurrency sales.
Finally, House Bill 2387 (H.B. 2387), brings bitcoin ATMs into the spotlight. The Regulation of Bitcoin ATMs bill is targeted to protect Arizona residents from cryptocurrency-related scams.
Law enforcement agencies and AARP have both been supportive of this bill, reporting that many elderly people in the state have lost money to criminal activity.
H.B. 2387 seeks a $2,000 limit on how much cash an individual can place into a bitcoin ATM per day.
As reported by Arizona’s CBS 5 TV …
… one Arizona victim lost $28,000 which she had put into the machines, and sent the bitcoin away.
Originally targeting a $1,000 cap, the bill also requires operators to make sure users specifically acknowledge the fees they’re being charged, “some of which are up to 20%,” the CBS affiliate reported.
The state of New Jersey has in fact introduced two identical bills, S3694 and A4880, to ban all bitcoin ATMs in the state.
While none of the bills Arizona is considering have been fully enacted into law yet; all have cleared their committees, floor votes, and all five bitcoin-related bills moved forward successfully, and are now awaiting final House/Senate votes or governor approval.
