Arizona governor vetoes bill to limit local regulations and taxes on blockchain node operators
Arizona Governor Katie Hobbs has vetoed legislation that would have prevented municipalities from taxing cryptocurrency mining.
In a Wednesday letter, Hobbs said the bill, SB 1236, seeks to tie the hands of local stakeholders in relation to cryptomining policymaking. She said:
“The bill broadly defined ‘blockchain technology’ and prevents local policymaking regarding an emerging and potentially energy-intensive economic activity.”
The legislation, first introduced in January, aimed to revise parts of statutes related to blockchain technology, greatly reducing or eliminating regulation and taxation of node operators at the state level.
In other words, it wanted to ensure that taxes and fees imposed on blockchain mining node operators are a state concern and not a matter that can be decided at the city, town or county level.
“A city or town may not impose a tax or fee on any person or entity to operate a blockchain technology node in a residence,” the Senate version of the bill said.
“The imposition of a tax or fee on a person or entity operating a node on blockchain technology in a residence is of governmental concern and not subject to further regulation by a city or town.”
SB 1236 was sponsored by Arizona Senator Wendy Rogers, a member of the Republican Party known for her crypto-friendly stance.
Rogers has also introduced legislation to make Bitcoin legal tender in Arizona and to allow state agencies to accept the cryptocurrency as a form of payment
Furthermore, the senator has introduced two more crypto-related bills.
One bill, SB 1239, aims to allow government agencies to accept crypto as payment. Another, SB 1240, aims to exempt cryptocurrency from property taxes.
These bills are registered as having crossed over, meaning they have passed the Arizona Senate and can now be considered by the House.
US senators are introducing bills aimed at increasing transparency around crypto mining
Last month, US Senator Edward Markey and Representative Jared Huffman revealed intentions to reintroduce the Crypto-Asset Environmental Transparency Act in Congress in an effort to promote greater transparency around crypto mining and its environmental impacts.
The bill would require cryptomining companies to disclose emissions for operations that use more than 5 megawatts of power or “multiple cryptoasset mining facilities owned by the same company and each having a power load of less than 5 megawatts; but having a cumulative power load greater than or equal to 5 megawatts.”
Similarly, US lawmakers have recently stepped up efforts to regulate the crypto industry in the wake of some high-profile failures last year.
In particular, the SEC has cracked down on crypto companies, charging exchanges, lending platforms and other digital asset firms for violating securities laws.
