Arizona is moving quickly to provide legal protections for Bitcoin miners and blockchain node operators. The Arizona Senate approved House Bill (HB) 2342 on Thursday, sending it to Governor Katie Hobbs for final approval. As Bitcoin Laws on X reports, HB 2342 passed the Senate by a narrow margin of 17 votes to 12, reflecting intense debate among lawmakers.
https://x.com/Bitcoin_Laws/status/1910471330878939454
If Governor Hobbs signs this bill, it will significantly protect home blockchain computing and artificial intelligence from restrictions by local governments.
Protection under HB 2342
Introduced by Rep. Teresa Martinez (R-N.C.) in January 2025, HB 2342 explicitly protects residential blockchain activity. The bill identifies computing power used for blockchain mining, node operation, AI computing, and high-performance scientific research as matters of “national importance.”
As such, it prevents cities and counties from imposing zoning or use restrictions on these activities. The bill is a strategic initiative by Arizona to embrace blockchain technology and support innovation across the state. Arizona continues to position itself as a leader in blockchain and cryptocurrency adoption. HB 2342 is part of a broader legislative effort, including recent proposals to integrate digital assets into state reserves.
Arizona lawmakers have previously proposed two significant bills: the Strategic Digital Asset Reserve Act (SB 1373 ) and the Arizona Strategic Bitcoin Reserve Act (SB 1025 ). These bills would allocate state funds to bitcoin reserves, allowing up to 10% of treasury or pension funds to be invested in digital assets, including seized cryptocurrencies.
Other States Competing on Crypto Legislation
Several states are closely watching Arizona’s legislative developments, many of which are proposing similar cryptocurrency-related bills. According to the reserve bill tracker Bitcoin Laws, about 26 states have introduced comparable Bitcoin reserve initiatives. However, Arizona is the closest to passing such comprehensive legislation.
Neighboring Texas recently passed its own version, Senate Bill 21 (SB-21), seeking to position itself as a competitive player in cryptocurrency adoption. Additionally, Oklahoma has passed House Bill 1203 (HB 1203) through its House of Representatives and is awaiting a vote in the Senate. While Arizona is focused on state-managed crypto reserves, Kentucky has taken a different legislative approach.
Kentucky Governor Andy Beshear signed House Bill 701 (HB 701), which formally protects cryptocurrency holders who self-custody their assets. Kentucky’s law clarifies that mining and staking are not securities or forms of money transmission. This legislative distinction highlights the different strategies states have for regulating cryptocurrency.
Historical Context of Arizona's Crypto Efforts
Arizona began moving toward crypto-friendly legislation in 2022, when President Joe Biden issued an executive order to regulate cryptocurrencies nationally. At the time, Arizona lawmakers had already proposed recognizing Bitcoin as legal tender. Senator Wendy Rogers, in particular, introduced a bill to formally recognize Bitcoin as legal currency in Arizona. Although the measure failed to pass, it set a clear precedent for continued legislative interest in cryptocurrency.
A significant aspect of HB 2342 is its broad definition of “computing power,” which encompasses a variety of advanced technologies. The bill explicitly includes blockchain mining and node operation, but also covers artificial intelligence, cloud computing, and residential scientific research. This broad definition underscores Arizona’s intent to support technological innovation in general, not just cryptocurrency.
Parallel events are taking place in other states.
Source: cryptonews.net
