Senator Wendy Rogers aims to make Arizona the most crypto-friendly state in the United States as she submits two more crypto bills on Tuesday.
This is not the first crypto-related proposal to gradually increase the utility of crypto in the Grand Canyon State. Last Friday, Rogers already submitted a bill to make bitcoin legal tender in the state.
This bill has since drawn widespread criticism, as the US Constitution explicitly prevents individual states from declaring assets legal tender.
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Rogers has long been a strong supporter of cryptocurrencies. In April last year, she spoke out in favor of a bill to create a committee to study said digital assets, and even publicly declared her intention to push for the legalization of such projects. of law.
What are the two new Crypto Bills?
The two new banknotes are respectively SB1127 and SB1128.
SB1127 seeks to amend Section 1, Title 35, Chapter 1, Article 3 of the Arizona Revised Statutes, which proposes that an agency be authorized to enter into an agreement to receive payments for certain obligations.
It builds on the foundation of a 2018 bill that allows residents to pay income taxes using Bitcoin or other specific cryptocurrencies accepted by state authorities.
Crypto total market cap at $1.69 trillion | Source: Crypto Total Market Cap on TradingView.com
If adopted, payments and remittances currently made in US dollars in Arizona could be processed using bitcoins. For example, employees could choose to receive their salaries directly using crypto and businesses would be free to use digital currency for other financial transactions.
Meanwhile, the second bill, SB1128, targets the tax exemption of “virtual currency”. The deposit defines cryptography as a digital representation of value that is not fiat currency and is a unit of account, store of value, or medium of exchange.
Legal and political obstacles
Although supported by some crypto and business advocates in Arizona, both bills face numerous legal and political hurdles.
Proponents of the current banking system criticized the proposal as it would allegedly disrupt the current system.
“I see this much more as a stunt than a real shake-up,” Rohan Gray, research director at the Digital Fiat Currency Institute, said in an interview with Politico.
Critics say replacing national currencies with private and open-source cryptocurrencies would be a hindrance to how the government regulates the economy. Moreover, the status of the dollar as the world’s reserve currency would also be upset.
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Still, Arizona, along with other states, transmits the alternative currency. For example, Wyoming is the most extensive in terms of cryptocurrency legalization among all US states.
Wyoming’s bill, backed by big business and commercial banking veterans, has pushed for crypto enforcement on sales and use taxes.
“We are looking for alternative currencies to compete with the US dollar,” said Zhou Xiaomeng of US CryptoFed.
Meanwhile, as of this writing, Bitcoin is priced at $38,413.50/1 BTC. This is a drop of -334.60 (0.86%) for the past 24 hours.
Featured image from Euronews, chart from TradingView.com