Arizona Governor Katie Hobbs has vetoed legislation that would have barred municipalities from taxing cryptocurrency mining operations.
In a Wednesday letter, Hobbs said that the bill SB 1236 seeks to tie the hands of local stakeholders in regard to crypto mining policymaking. She said:
“The bill broadly defined “blockchain technology” and prevents local policymaking concerning an emergent and potentially energy-intensive economic activity.”
The legislation, first introduced in January, aimed to revise sections of statutes pertaining to blockchain technology, largely 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 statewide concern and not a matter that can be decided at city, town, or county levels.
“A city or town may not impose a tax or fee on any person or entity for running a node on blockchain technology in a residence,” said the Senate version of the bill.
“The imposition of a tax or fee on a person or entity running a node on blockchain technology in a residence is of statewide 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 who is known for her crypto-friendly stance.
Rogers has also introduced legislation to make Bitcoin legal payment 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 state agencies to accept crypto as payment. Another, SB 1240, aims to exempt cryptocurrency from property taxes.
These bills are recorded as having crossed over, meaning that they have passed Arizona’s Senate and can now be considered by the House.
US Senators Introduce Bill 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 a bid to promote greater transparency around crypto mining and its environmental impacts.
The bill would require crypto mining companies to disclose emissions for operations that consume more than 5 megawatts of power or “multiple crypto-asset mining facilities that are owned by the same company and each has a power load that is less than 5 megawatts; but have a cumulative power load that is greater than or equal to 5 megawatts.”
Similarly, US lawmakers have recently ramped up efforts to regulate the crypto industry in the wake of some high-profile failures last year.
The SEC, in particular, has been cracking down on crypto companies, charging exchanges, lending platforms, and other digital asset firms with violating securities laws.