State lawmakers across the US are increasingly active in efforts to integrate cryptocurrencies into state government operations.
Recent legislative activity in North Carolina, New York, and Arizona demonstrates this growing trend, with new bills gaining momentum.
These proposed bills indicate a heightened interest among state governments in both regulating and incorporating cryptocurrencies into their financial systems.
Specifically, North Carolina’s House Bill 920 proposes to permit the use of cryptocurrencies for tax payments and other state transactions. In New York, Assembly Bill A7788 aims to broadly allow residents to pay state fees using cryptocurrencies.
Concurrently, the governor is considering Arizona’s Senate Bill 1236, which aims to safeguard cryptocurrency mining and AI operations within homes.
North Carolina Bill to Enable Crypto Tax Payments
North Carolina’s House Bill 920, titled the “North Carolina Digital Asset Freedom Act,” was introduced on April 10 by State Representative Neal Jackson, along with two co-sponsors.
This bill proposes the use of specific digital assets for remitting state tax obligations. To qualify as acceptable under this bill, digital assets must meet several criteria.
These include a minimum market capitalization of $750 billion, a daily trading volume exceeding $10 billion, and a listing on multiple regulated exchanges in the United States.
Currently, Bitcoin is the only cryptocurrency that fulfills these requirements, possessing a market capitalization greater than $1.3 trillion.
The proposed legislation does not explicitly mention Bitcoin or any other specific crypto asset.
New York Considers Crypto Payments for State Charges
Following a similar direction as North Carolina, New York is also reviewing a bill, Assembly Bill A7788, which would permit residents to pay state-related expenses using popular cryptocurrencies.
These state expenses would include items like taxes, rent, fees, and penalties.
Assemblyman Clyde Vanel introduced this bill, also on April 10th, which proposes that state agencies be allowed to accept cryptocurrencies that meet defined standards as a valid form of payment.
The bill specifically lists Bitcoin, Ethereum, Litecoin, and Bitcoin Cash as examples of cryptocurrencies that would be eligible under this provision.
Furthermore, to cover the administrative expenses of managing cryptocurrency payments, the bill would authorize state agencies to impose a service fee for such transactions.
Arizona Bill to Protect Home Crypto Mining Operations
In Arizona, House Bill 2342 is progressing toward Governor Katie Hobbs’ potential signature as a law.
This bill seeks to protect the rights of individuals to conduct cryptocurrency mining and operate blockchain nodes within their private residences.
Representative Teresa Martinez introduced the bill in January.
It recently passed the Arizona Senate by a narrow margin, with 17 votes in favor and 12 against, on Thursday.
HB 2342 seeks to make residential cryptocurrency mining and node operation important for the whole state, which would stop local governments, like city or town councils, from creating strict zoning laws or usage rules against these activities.
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