House reverses earlier defeat and approves bill allowing cryptocurrency payments to state through vendor gateway

The Arizona House on reconsideration approved Senate Bill 10-24, a bill authorizing the Department of Revenue to accept cryptocurrency payments through a third-party gateway that would convert digital assets to U.S. dollars before money reaches the state's accounts. The measure passed on reconsideration by a 31-26 vote.

Members debated whether the bill exposed the state to risk. Representative Alma Hernandez explained on the floor that the Department of Revenue would run a competitive process for a vendor that could accept cryptocurrency and immediately convert it to fiat currency "before it hits the state's books," and she characterized that conversion as eliminating risk to the state. "So it's not like they're actually taking it, but it gives and widens the ability of certain people to pay in a different way," she said.

SB 10-24 failed its first floor vote earlier in the session, recorded as 29 ayes, 28 nays, 3 not voting. Representative Willoughby later moved to reconsider that failure and the House again placed the bill on third reading; on reconsideration the clerk recorded 31 ayes, 26 nays, 3 not voting and the bill was conveyed to the Senate.

Supporters argued the change modernizes payment options and creates a competitive procurement to protect the state's accounting; critics said accepting cryptocurrency raises oversight and volatility concerns. The clerk recorded passage on reconsideration and the House directed the clerk to record the action and convey the bill to the Senate.