The Arizona Senate has officially passed HB 2342, a bill that protects Bitcoin miners and node operators from zoning restrictions, marking a major step forward in the state’s pro-crypto legislation efforts. The bill now awaits signature from Governor Katie Hobbs to become law.
HB 2342: What the Bill Means
Passed on April 10 with a 17–12 Senate vote, House Bill 2342 ensures that cities, towns, and counties cannot ban or restrict individuals from running blockchain nodes or using computing power—including for Bitcoin mining, AI workloads, and cloud computing—within their own homes.
Introduced by Rep. Teresa Martinez in January, the bill defines “computational power” broadly, opening protection not just to crypto miners, but also to developers and scientific researchers using advanced computing resources.
Why This Bill Matters
- Protects at-home Bitcoin miners and node operators from local government interference.
- Legal clarity for Arizona residents engaging in decentralized technologies.
- Extends to AI and cloud workloads, showing Arizona’s broader support for digital innovation.
Arizona’s Bigger Crypto Ambitions
This bill follows two other crypto-friendly bills recently clearing the Arizona House Rules Committee that would:
- Allow the state treasury and retirement funds to invest up to 10% in Bitcoin.
- Enable crypto lending strategies for generating returns on idle digital assets.
- Repurpose seized cryptocurrencies for public fund portfolios.
If enacted, Arizona could become one of the first U.S. states to create a crypto reserve at the government level.
Final Hurdle: Governor’s Signature
Despite legislative momentum, Governor Katie Hobbs has a high veto rate—22% of bills in 2024 (73 out of 330). This puts the bill’s future at risk, even with strong support from lawmakers.
Governor Hobbs previously vetoed a bill that would have prohibited municipalities from taxing crypto mining operations, signaling skepticism toward unregulated expansion.
Still, crypto advocates are optimistic, citing bipartisan support and increasing state-level interest in digital asset infrastructure.
