Arizona Senate Passes Bill Protecting Bitcoin Mining, Node Operations

By taking this step, Arizona reinforces its support for blockchain innovation and individual rights in the digital era.

Arizona has advanced legislation that would safeguard individuals' rights to operate Bitcoin mining rigs or blockchain nodes from any restrictions by local authorities.

The state Senate voted 17-12 on April 10 to pass House Bill 2342 (HB 2342), which is now awaiting Governor Katie Hobbs' signature.

If enacted, Arizona would join a small group of U.S. states with clear, state-level protections for decentralized technologies such as Bitcoin mining, node validation, A.I., and scientific computing.

After Representative Teresa Martinez first introduced HB 2342 in January 2025, it went on to be approved by the House in March. The bill is focused on what it calls “computational power.”

As a result, cities and counties will not be able to adjust the state law to prohibit or limit residents from running blockchain nodes or, going forward, mining digital assets from home, under this law.

HB 2342 would also prevent any local government in Arizona from imposing a fee or tax on computational power used for digital asset mining.

Furthermore, the bill states that the state will have the final say in regulating blockchain technology and digital assets, limiting the ability of local jurisdictions to intervene.

Granting legal protection in this way could enable tech-savvy residents and entrepreneurs to operate decentralized infrastructure without worrying about local enforcement or shutdowns.

While the main focus is on Bitcoin mining, HB 2342 has broader implications. The bill's legal definition of “computational power” would seem to open the door to many kinds of at-home tech work, such as running Ethereum validators or AI models on powerful GPUs.

This clarity is critical as the growth of edge computing and decentralized infrastructure becomes more commonplace.

Arizona has been positioning itself as one of the most crypto-progressive states in recent years.

While the Biden administration pushed ahead with executive orders aimed at federal crypto regulation, Arizona remained a state pursuing higher Bitcoin adoption.

Earlier this year, Senator Wendy Rogers submitted a bill to make Bitcoin legal tender in Arizona, although that bill did not pass. The state's willingness to consider such bold moves signals a coherent strategy of seizing financial and technological sovereignty.

The Arizona Senate also introduced the Arizona Strategic Bitcoin Reserve Act (SB 1025) in January 2025 and the Strategic Digital Assets Reserve Bill (SB 1373). If enacted, these bills would allow Arizona to:

Utilize Bitcoin (BTC) as one of its official reserve assets: A move that would put Arizona in select company among U.S. states.

Engage in an organized manner with crypto firms to encourage investment in the state.

The bills were referred to the relevant Senate committees by a 23-1 vote.

Perhaps the most remarkable feature of HB 2342 is its language regarding state preemption. The bill clearly strips power away from local jurisdictions — it’s a shift in how digital infrastructure is governed.

Claims on behalf of Sections 9-500.42 and 11-269.22, Arizona Revised Statutes, will make it clear that no city or county may prevent, deter, or otherwise limit a person from lawfully obtaining or utilizing computational power in their home. Legally speaking, that puts digital rights on par with other protected utilities and technologies.

Lawmakers stated that decentralized technologies are too essential to be encumbered by fragmented local rules. Innovation at the state level is key to attracting talent and capital, supporters generally felt.