Bitcoin Miners Gain Momentum in Arizona

Calvin James

Arizona is moving quickly to create legal protections for Bitcoin miners and blockchain node operators. The Arizona Senate passed House Bill (HB) 2342 on Thursday, sending it to Governor Katie Hobbs for final approval. According to a post on X by Bitcoin Laws, HB 2342 passed the Senate by a narrow margin of 17 votes to 12, reflecting a heated debate among lawmakers.

https://x.com/Bitcoin_Laws/status/1910471330878939454

If Governor Hobbs signs this bill, it would significantly protect blockchain computing and artificial intelligence done at home from restrictions by local governments.

Defense under HB 2342

Introduced by Rep. Teresa Martinez (R-N.C.) in January 2025, HB 2342 explicitly protects blockchain activity in private homes. 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 prohibits cities and counties from imposing zoning or use restrictions on these activities. The bill represents Arizona’s strategic initiative to embrace blockchain technology and support innovation across the state. Arizona continues to establish 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 previously introduced two key bills: the Arizona 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, with the goal of investing up to 10% of treasury or pension funds in digital assets, including seized cryptocurrencies.

Competition Between States on Cryptocurrency Legislation

Several states are closely watching Arizona’s legislative developments, many of which are introducing similar cryptocurrency-related bills. According to the reserve bill tracker Bitcoin Laws, about 26 states have proposed comparable Bitcoin reserve initiatives. However, Arizona is the closest to passing such comprehensive legislation.

Neighboring Texas recently passed its version, Senate Bill 21 (SB-21), positioning itself as a contender in cryptocurrency adoption. Additionally, Oklahoma has passed House Bill 1203 (HB 1203) through its House of Representatives, awaiting a vote in the Senate. While Arizona is focused on state-run 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 hold their assets themselves. Kentucky’s law clarifies that mining and staking are not considered securities or forms of money transmission. This legislative distinction highlights the different strategies states have taken to regulate cryptocurrency.

A Historical Background of Arizona's Cryptocurrency Efforts

Arizona’s gradual move toward crypto-friendly legislation began 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. While the measure did not pass, it set a clear precedent for continued legislative interest in cryptocurrency.

A key aspect of HB 2342 is its broad definition of “computing power,” which encompasses a variety of modern technologies. The bill explicitly includes blockchain mining and node operation, but also extends to artificial intelligence, cloud computing, and home-based scientific research. This broad definition underscores Arizona’s intent to support technological innovation in general, not just cryptocurrency.

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Source: cryptonews.net