ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

HB 2654: blockchain and cryptocurrency study committee

S/E: cryptocurrency and blockchain commission

Sponsor: Representative Weninger, LD 13

Caucus & COW

Summary of the Strike Everything Amendment to HB 2564

Overview

Establishes the Cryptocurrency and Blockchain Commission (Commission).

History

Blockchain is a cryptographically secured distributed ledger that records transactions chronologically, permanently and unalterably.

Blockchain technology is distributed ledger technology that uses a distributed, decentralized, shared and replicated ledger, which may be public or private, permissioned or permissionless, or driven by tokenized crypto economics or tokenless. The data on the ledger is protected with cryptography, is immutable and auditable and provides an uncensored truth.

Statute provides that a signature that is secured through blockchain technology is considered to be in an electronic form and to be an electronic signature. A record or contract that is secured through blockchain technology is considered to be in an electronic form and to be an electronic record (A.R.S. § 44-7061).

Provisions

1. Establishes the 19-member Commission and outlines the Commission membership. (Sec. 1)

2. Directs the Commission to:

a) advise on cryptocurrency and blockchain-related matters including policies, pilot programs and initiatives;

b) develop strategies and cryptocurrency and blockchain solutions to position Arizona as a leader in blockchain innovation designed to improve transparency, increase efficiency and enhance the delivery of services to Arizona residents;

c) partner with and facilitate collaboration with academic institutions, industry leaders, innovators, firms, startups and the White House, with the aim of supporting blockchain technologies and furthering cryptocurrency and blockchain adoption, ensuring its integration in Arizona's economy;

d) promote cryptocurrency and blockchain literacy and workforce development within educational institutions;

e) provide cryptocurrency and blockchain training programs for Arizona law enforcement agencies to promote blockchain literacy and workforce development;

f) research, propose and help develop innovative, risk-averse and industry-supportive cryptocurrency and blockchain legislation; and

g) meet on the call of its chairperson. (Sec. 1)

3. Instruct the Commission to appoint, from among its membership, the Arizona Crypto Czar to help lead state cryptocurrency and blockchain initiatives and coordinate with federal initiatives and outlines the duties of the Czar. (Sec. 1)

4. Authorizes the Commission to:

a) create subcommittees to address specific blockchain adoption and integration to provide detailed and informed recommendations to the commission;

b) research and analyze topics within their designated focus areas to provide recommendations;

c) collaborate with stakeholders to ensure alignment with state and federal blockchain initiatives;

d) identify challenges and opportunities in blockchain adoption and propose actionable solutions;

e) support the implementation of pilot programs, policies and educational initiatives related to their designated focus areas;

f) provide progress updates and reports to the commission on their activities and findings; and

g) work with national and international blockchain experts that provide strategic guidance and expert recommendations to the Commission on blockchain trends, technologies and best practices. (Sec. 1)

5. Allows the Commission to seek guidance from experts to:

a) evaluate proposed blockchain initiatives and pilot programs;

b) offer insights on emerging blockchain technologies and innovations;

c) facilitate connections with global blockchain leaders, organizations and research institutions;

d) ensure that the Commission's strategies align with international standards and best practices. (Sec. 1)

6. Requires the Commission to prepare a report detailing its activities and recommending legislation on cryptocurrency and blockchain solutions to the Governor and Legislature by December 1 of each year. (Sec. 1)

Amendments

Committee on Commerce

1. Terminates the Commission on July 1, 2028.

2. Includes an emergency clause.

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6. HB 2654

7. Initials PB Page 0 Caucus & COW

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