Arizona Smart Contract Legislation

Arizona

Brookings Grade: Recognizing innovation potential

Bills

HB2601: securities; crowdfunding; virtual coin offerings

Passed: 12 April 2018

 

HB2601 provides the Arizona crowdfunding exemption bill. The exemption applies to virtual coin offerings made in Arizona for Arizona residents. The bill also defines underwriters and security token and utility token.

 

A buyer engaging in an intrastate offering only becomes an underwriter if it purchases more than 50 percent of the coins offered in an offering.

 

If a token will be used to facilitate a transaction within 90 days it is defined as a utility token and it is exempt from being a security, otherwise, it is a security.

 

Further reading:

https://cryptonewsnetwork.com/arizona-bill-grants-security-exemption-for-utility-tokens/  

 

HB2603: corporations; blockchain technology

Passed: 03 April 2018

 

HB2603 states that Arizona is friendly to emerging blockchain technologies.

 

Further Reading:

Arizona Blockchain Bill Signed Into State Law

 

HB2602: running nodes; blockchain; regulation prohibition

Passed: 12 April 2018

 

HB2602 bars towns or local governments from restricting cryptocurrency mining in residences.

 

HB2216: prohibited firearm tracking; classification

Passed: 18 April 2018

 

HB2216 criminalizes the tracking of firearms on a blockchain.

 

HB2417

Passed: 29 March 2018

 

HB2417 defines blockchain technology, explicitly legalizes blockchain signatures, recognizes the validity of smart contracts, and validates blockchain legitimacy generally.

 

SB1091

Vetoed: 16 May 2018

 

When it passed the Senate, SB1091 allowed state taxes to be paid in Bitcoin or any other cryptocurrency. By the time it passed the House and reached the Governor’s desk however, it had been stripped down to only allowing tax collection at the point of sale. Ultimately, the Governor vetoed the bill, saying he was “concerned about the unintended consequences this bill could have on private industry.”

 

Further Reading:

https://cointelegraph.com/news/us-arizona-senate-passes-bill-to-allow-tax-payments-in-bitcoin

 

SB1145

Pending

 

SB1145 would address taxability of cryptocurrency transactions.