Blockchain Bill in Arizona Would Prevent Regulation Of Crypto Nodes

News, Regulation | February 9, 2018 By:

Arizona State Representative Jeff Weninger has introduced a bill that would protect blockchain node operators from possible prohibitions by local and county governments.

House Bill 2602, which was introduced on February 6, states that cities, towns, and counties may not prohibit or otherwise restrict an individual from running a node on blockchain technology in a residence. Running a node on blockchain means providing computing power to validate or encrypt transactions.

The bill is intended to prevent the passage of regulations in Arizona that could hinder the development of blockchain technology. The bill was specifically aimed at preventing governmental interference with residential crypto mining.

“I believe when you have a new technology, you don’t want government bureaucrats who don’t know anything about it, or politicians like myself who don’t know enough about it, to arbitrarily put regulations on [it] that morph how those technologies are going to grow, rather than just letting them grow organically,” Weninger said in a published report.

Arizona has seen other bills introduced relating to cryptocurrency and blockchain technology. Bill SB1091, which was introduced last month by Weninger, along with Senator Warren Petersen, Senator David Farnsworth, and Representative Travis Grantham, would provide Arizona residents the option to pay their taxes with bitcoin. Weninger said the bill passed the Senate Finance Committee with a vote of 4–3.

Arizona lawmakers have also proposed bills aiming to both recognize bitcoin and other cryptocurrencies as currency — as opposed to a commodity.

“It’s one of a litany of bills that we’re running that is sending a signal to everyone in the United States, and possibly throughout the world, that Arizona is going to be the place for blockchain and digital currency technology in the future,” said Weninger.