• The state legislature is being presented with a bill by a Republican senator that proposes to adopt BTC as a method of payment.
• Even if the state legislatures approve it, the US Congress will have to approve it.
• Despite the fact that this regulatory issue is of national importance, the federal government shows no intention of banning cryptocurrency.

Senator Wendy Rogers (NYSE) presented the bill for (BTC), which will make it legal tender in Arizona. She has long advocated the adoption of cryptocurrency.

Arizona’s Legislature must determine if the bill is compatible with the federal laws and the United States Constitution.

After the Republican legislator presented the proposal on Tuesday, the second reading was given on Wednesday. The final vote is expected in the state senator.

It must be approved by the Arizona Legislature and the United States Congress in order to make Bitcoin legal tender.

“The Coinage Clause of the Constitution means that the power to determine what is and is not legal tender in the United States rests solely with Congress,” said attorney Preston Byrne, a partner at Anderson Kill law firm, according to blockworks.co.
“If enacted, [the bill] would be largely symbolic,” he added.

The Flipside

• This proposal was presented at the same time as the International Monetary Fund’s (IMF), El Salvador, to repeal the Bitcoin Law.

Credit organizations consider that cryptocurrency can pose serious risks to Central American economies. It could also cause it to be on the brink of bankruptcy because of its volatility.

The US has been tolerating BTC and other cryptocurrency, but it is not clear how they will react. The government may issue in the next few days an executive order to regulate crypto assets, which it regards as a matter national security.

Congress and neither the Federal government has shown an interest in banning cryptocurrency use. Jerome Powell, the chairman of the Federal Reserve and Gary Gensler the director at the Securities and Exchange Commission (SEC) have expressed positive views.

What are Cryptocurrencies?

“Aside from the legality though, it begs the question of whether digital assets are actually ‘currencies’ or forms of ‘money,’” says Steve Gannon of the law firm Murphy and McGonigle. Congress must address this question when it considers the issue.
The other question that the lawyer asks is, for what purpose would the state accept digital assets as “legal tender.” Will it simply be an alternative payment instrument or will it have a broader scope of financial action?

According to Byrne, even if the bill passes and becomes law in Arizona, the impact of BTC use on the state’s economy will be limited.

He believes even that Arizonans should not be “forced” to accept bitcoins in a constitutionally accepted manner.
“Arizona could certainly pass a law like this and the state government could choose to accept Bitcoin as payment for Arizona taxes, but this would not change the legal treatment of Bitcoin as property from a federal tax perspective,” Byrne clarified.

Why you should care

• Senator Rogers is a member of the Senate Blockchain and Cryptocurrency Study Committee and has promised that Arizona will be crypto-friendly.
• Other states may follow Arizona’s lead and talk about the advantages of crypto as the enthusiasm grows for Bitcoin and increases the demand to invest in crypto.

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