As per a recent revelation, Katie Hobbs, governor of Arizona, has decided to veto a pro-crypto legislation bill targeting mining operations. The governor wrote a letter to the authorities informing them about her decision to veto the bill that seeks to prevent local governments from taxing crypto mining operations.
Hobbs writes that she has vetoed a bill designated “SB 1236” which aims to ensure that taxes and fees imposed on blockchain mining node operators are only a statewide concern and not a matter that can be or should be decided at the city, town, or national levels.
In her official letter, the government penned down her thoughts saying that the bill “prevents local policymaking concerning an emerging and potentially energy-intensive economic activity.” She also adds that the bill fails to engage with local stakeholders and her veto would provide space for finer regulation of crypto mining.
Additionally, she stated that the bill has an overly broad definition of blockchain technology. The bill titled “SB 1236” was initially sponsored by Arizona Senator Wendy Rogers, a member of the Republican party who is known for her attempts at crypto legislation.
Recently, the senator has sponsored another high-profile cryptocurrency bill numbered “SB 1235” which was introduced in January. That bill aims to recognize Bitcoin as a legal tender in the state. While the bill has not been vetoed, as of March it has neither been enacted into law.
In addition, Rogers has introduced two other relevant bills titled “SB 1239,” which aims to allow state agencies to accept crypto as payment, and “SB 1240,” which aims to exempt cryptocurrency from property taxes. Those bills are recorded as having crossed over, meaning that they have passed Arizona’s Senate and can now be considered by the House.
Hobbs is a member of the Democratic party and has vetoed several other bills unrelated to cryptocurrency in recent weeks and months. However, it is unclear why she has refrained from vetoing Roger’s other crypto bills, or if she will do so in the future.
Additionally, it is also unclear if any part of Arizona has attempted to impose crypto bans below the state level similar to how localities in other states like North Carolina have done so.
Considering the imminent divide in the political ideologies of the states in the country and the authority they hold, the states have varied stances on cryptocurrencies as well as mining. On one hand, some states like Montana, Arkansas, and Mississippi have taken pro-crypto mining steps, and states like New York have announced a complete ban on the activity.
In the last week of February, the Montana Senate passed a historic bill to help struggling crypto miners from discrimination against mining operations. Prior to this, the Mississippi Senate passed the “Right to Mine” bill which is to protect Bitcoin miners from discrimination and recognizes the potential of the activity to drive economic growth and stabilize the energy grid.
Notably, Texas, a state in the US, has a vital role to play in matters of crypto mining due to its power grid which supports a huge proportion of miners. In the past weeks, the state has witnessed adverse bills come into the picture.
As Todayq News reported, Cody Harris, a Texas House of Representatives member, proposed a Right to Mine bill asking his fellow lawmakers to rise in support of miners and “express support for protecting individuals who code or develop on the Bitcoin network.” Soon after that the Texas senate unanimously approved the “Senate Bill 1751,” which seeks to regulate how Bitcoin miners can interact with the power grid, and how their earnings will be taxed.
The two political parties in the country have also been found to have contrasting opinions when it comes to cryptocurrencies. On one hand, Republican leaders have displayed a softer stance whereas the Democrats have been antagonistic in their approach. The US budget proposal has also put forward a 30% excise tax on the cost of powering crypto mining facilities.