Arizona to provide legal protection to Blockchain
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Arizona to provide legal protection to Blockchain

Arizona is one more State where Blockchain technology is getting legal protection. A bill to this effect was signed by its Governor Dough Ducey a few days back. This would enable corporations to have and share data on a distributed ledger. This will not be surprising to many since a number of state governments in the United States are focusing on passing liberal legislation concerning the technology, as well as, the cryptocurrencies. This is despite the sluggishness in the digital currency market though optimists term the current situation as a ‘market reset.’

Overwhelming Majority

The most important thing is that the bill, which is known as HB 2603, got overwhelming support from the House of Representatives in Arizona. Only three representatives were against the legal protection of blockchain technology whereas one representative was absent. That leaves a positive vote of 56 and enabled the Senate to pass the bill unanimously. This also suggested that every State is interested in using the technology in their domestic circuit rather than ignoring it.

In February, representative of Arizona Revised Statutes, Jeff Weninger, introduced the bill for the first time as an amendment. One of the three bills objectives was to open the door for new age technologies to emerge in the State. The other two bills, HB 2602 and HB 2601, are waiting for a third reading in the Senate. The first bill was aimed at curbing cryptocurrency mining in residences in the town.

As far as the bill HB 2601 is concerned, the objective is to address securities and crowdfunding apart from recognizing a virtual coin as a ‘digital representation of value.’ That would mean authorizing its function as a means of exchange in respect of digital trading, cointelegraph.com reported. The State is one among the States to enable its residents to pay their taxes through Bitcoin.

For this purposes, Arizona Senate had already passed a bill SB 1091 last month. The author of the latest bill wanted to take steps that are in line with the technological advancement. Weninger did not want the State to lag behind in technology despite the cryptocurrency market facing downtrend due to tightening of regulations throughout the world.

Delimit Applications

The latest move is recognizing the Blockchain technology and delimiting its applications in the State. This is not the first time that Arizona is moving closer towards Blockchain technology. In April last year also, the State allowed legalization of Blockchain signatures apart from recognizing the enforceability of smart contracts. The Revised Statutes of the State currently indicated that data ‘written’ and stored on the technology is “immutable and auditable and provides an uncensored truth.”

Aside from Arizona, there are others that are focusing on Blockchain technology and engaged in the legislation of a bill. For instance, New Hampshire granted an exemption to crypto traders from money transmission regulations. Similarly, Wyoming followed suit and granted an exemption to digital currencies from property taxation. The State also freed some of the tokens from securities regulations. The latest move could force other States, which are yet to take a call on the technology, to follow suit.

About the author

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John Creech

John is a Tech Journalist. He has been passionate for the cryptocurrencies for over 4 years now. He loves writing about technological advancements and always seeks to analyse what future will bring to us.

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