Arizona has passed House Bill 2342 (HB 2342), legislation that protects individuals who mine Bitcoin or operate blockchain nodes at home from zoning and usage restrictions imposed by cities or counties.Â
HB 2342 cleared the Arizona Senate in a narrow 17–12 vote and now heads to Governor Katie Hobbs for final approval. It was initially introduced by Representative Teresa Martinez of Legislative District 16 in January.
The new law prohibits local governments in Arizona from imposing zoning restrictions or land use ordinances that would unreasonably hinder these activities. Whether on a small scale at home or within large-scale commercial operations, blockchain participants are now shielded from city-level interference.
Importantly, the legislation clearly affirms people’s right to mine cryptocurrencies and run blockchain nodes in their residences, given that they are at the heart of decentralized networks such as Bitcoin and Ethereum.
Crypto advocates hail the legislation as a significant milestone in securing open access to decentralized financial systems and blockchain infrastructure—free from excessive bureaucracy or arbitrary shutdowns.
Arizona leads with a crypto-friendly stance on blockchain
Arizona legislators have characterized the measure as a power grab that would boost innovation, stimulate the economy, and protect civil liberties. It is seen as defensive legislation that protects emerging technology and individuals’ rights to engage in lawful digital commerce and expression.
The bill’s passage is among a growing number of legislative moves in Arizona to reach out to the digital economy. In recent years, the state has passed a string of business-friendly legislation, including the recognition of smart contracts and electronic signatures and tax breaks for tech startups.
Lawmakers hope to attract more crypto businesses and startups to the state — which would bolster the state’s overall economic resilience and diversity by protecting miners and node operators from local zoning enforcement.
Crypto lovers hail Arizona for the legislative stand
Supporters argue that legislation like HB 2342 strikes the right balance—enabling meaningful blockchain innovation while upholding responsible governance of emerging technologies.
Arizona is reaffirming its commitment to the decentralized principles that underpin blockchain networks by safeguarding the rights of miners and node operators. The state is positioning itself as a forward-thinking hub for crypto development at a time when these technologies continue to gain traction.
While federal regulation of digital assets has yet to materialize, Arizona’s example can lead other states to follow the same laws. Since energy usage, the environment, and consumer protection are all on the national agenda, most state legislatures are trying to figure out how to regulate crypto mining without stifling innovation.
Arizona offered an explicit message of empowering individuals, attracting innovators, and drawing lines that favor progress over panic. The passage of HB 2342 sends the message to entrepreneurs, developers, and investors worldwide that Arizona is open to crypto.
Arizona leads the Bitcoin reserve race as neighboring states scramble to catch up
Last month, lawmakers put forward two parallel proposals: the Strategic Digital Assets Reserve Bill (SB 1373) and the Arizona Strategic Bitcoin Reserve Act (SB 1025).
If signed into law, these bills would allow Arizona to build state-managed reserves of digital assets, including using seized crypto and investing up to 10% of the state treasury or retirement funds into Bitcoin.
Similar Bitcoin reserve bills have been introduced in around 26 states, but according to Bitcoin Laws’ Reserve Bill Tracker, Arizona currently leads the field.
Surrounding states are rushing to get on board. Texas just passed its Bitcoin reserve bill (SB-21) out of the Senate, and Oklahoma’s HB 1203 passed the House 77–15 and is headed to the Senate.
On the other hand, Kentucky took a different path — passing HB 701 to protect self-custodied crypto and explicitly declaring that mining and staking are not securities or money transmission activities.
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