Arizona is moving quickly to ensure legal protections for Bitcoin Miners and Blockchain Node Operators. The Arizona Senate has approved House Bill (HB) 2342 On Thursday, I moved it forward to Gov. Katie Hobbs for the final review. According to X’s post in the Bitcoin Act, HB 2342 narrowly passed the Senate, supporting 17 votes, 12 people opposed, reflecting strong debate among lawmakers.
https://x.com/bitcoin_laws/status/1910471330878939454
If Gov. Hobbs signs the law, the law will significantly protect home-based blockchain and artificial intelligence computing from local government restrictions.
Protection based on HB 2342
Referred in January 2025 by Representative Teresa Martinez (R) the HB 2342 explicitly protects residential blockchain activities. The bill classifies the computing power used in blockchain mining, node operations, AI computing, and high-performance scientific research as a “statewide concern” issue.
As a result, it prevents cities and counties from imposing zoning or use restrictions on these activities. The bill represents Arizona’s strategic initiative to adopt blockchain technology and promote innovation across the state. Arizona continues to hold its position as a major nation in the adoption of blockchain and cryptocurrency. HB 2342 is part of a broader legislative effort, including a recent proposal aimed at consolidating digital assets into state reserves.
Arizona lawmakers have previously introduced two important bills: Strategic Digital Asset Reservation Legislation (SB 1373and Arizona Strategic Bitcoin Reserve ACT (SB 1025). These bills propose that state funds be allocated to Bitcoin reserves and invest up to 10% of the financial or retirement funds of digital assets, including seized cryptocurrencies.
Other states that compete with cryptography
Several states have been closely watching Arizona’s legislative development, and many have introduced similar crypto-related bills. About 26 states have proposed comparable Bitcoin Reserve initiatives, according to the Bitcoin Laws Reserve Bill Tracker. But Arizona is in the closest position to enacting such comprehensive laws.
Nearby Texas recently approved its version, Senate Bill 21 (SB-21), and is in a competitive position in the adoption of cryptography. Additionally, Oklahoma has raised House Bill 1203 (HB 1203) through the House of Representatives, waiting for Senate votes. Arizona focuses on state-controlled crypto preparation, while Kentucky has adopted a clear legislative approach.
House Bill 701 (HB 701) signed by Kentucky Governor Andy Besher. We have officially protected the assets independent crypto holders. Kentucky law makes it clear that mining and staking activities are not forms of securities or transmission. This legislative distinction highlights different strategies between nations regarding cryptographic regulation.
Historical background of Arizona’s cryptocurrency efforts
When President Joe Biden issued an executive order addressing national crypto-friendly regulations, Arizona’s push for crypto-friendly laws dates back to 2022. At the time, Arizona lawmakers had already proposed to consider Bitcoin as fiat currency. Senator Wendy Rogers has specifically introduced the law to formally recognize Bitcoin as a legal currency within Arizona. The measure was not passed, but set a clear precedent for ongoing legislative benefits for cryptocurrencies.
An important aspect of HB 2342 is the broad definition of “computational power” that includes a variety of advanced technologies. The bill explicitly includes blockchain mining and node operations, but also extends to scientific research activities carried out in artificial intelligence, cloud computing, and residential environments. This broad definition underscores Arizona’s intention to broaden innovation beyond just cryptocurrency.
Other states have undergone parallel development, and New Hampshire has recently passed Bitcoin-related laws. The New Hampshire House of Representatives has significantly approved Bill Treasury because it allows Bill Treasury to invest in precious metals and digital assets, including Bitcoin. The bill, which is now moving forward to the Senate, has won a slim majority of 192 votes and 179 votes. New Hampshire initiatives are gaining national momentum behind digital asset reserves.
Impact on local governments
Arizona’s HB 2342 will have a major impact on local governments by limiting regulators on home blockchain and computing activities. Previously, cities and counties could impose zoning and usage restrictions that affected these operations. The new law will centralize oversight at the state level and effectively override local regulations on housing blockchain and AI computing. This shift highlights the state’s broader vision of unified, innovation-friendly regulations.
The signature of Governor Katie Hobbs continues to be the final procedural step for HB 2342 to become law. The governor’s decision could affect Arizona’s overall blockchain and crypto legislative trajectory, taking into account the narrow Senate approval margin. If established, HB 2342 will immediately protect home-based blockchain node operators and miners, enhancing Arizona’s position as a pioneer in the blockchain regulatory framework.
Arizona’s legislative initiatives, including HB 2342 and the proposed reserve bill, show the state’s proactive stance in digital asset management. Nearby states and national lawmakers are closely monitoring Arizona’s progress, which could set a significant precedent for future U.S. cryptocurrency and blockchain regulations.
