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Arizona has taken a significant step toward embracing the future of decentralized technology by passing House Bill 2342 (HB 2342), a new measure aimed at protecting individuals who operate personal computing activities, such as Bitcoin mining and blockchain node validation, from local government interference. The state Senate approved the bill on April 10 with a 17 to 12 vote, signaling growing momentum in Arizona’s commitment to digital freedom and blockchain innovation.
Cryptocurrency use has grown dramatically in 2025, moving well beyond investment and speculation. Digital currencies are now a key tool for international remittances, with individuals sending money instantly and cheaply across borders. Some gaming platforms, as well as many of the most recently added online casinos, rely on cryptocurrency for fast, anonymous payments, allowing players from around the world to participate without delays or complex banking hurdles. Retailers in e-commerce and even brick-and-mortar locations in tech-forward cities now accept stablecoins like USDC.
In some states, crypto is being piloted for tax payments and licensing fees. Moreover, smart contracts on Ethereum and other chains are being used for real estate deals, copyright verification, and insurance claims. As crypto continues to integrate into daily life, legislation like HB 2342 plays a vital role in supporting the digital infrastructure that powers these advancements.
The legislation, introduced by Representative Teresa Martinez, seeks to clarify and protect the use of what the bill defines as “computational power.” This broad term includes not just cryptocurrency mining but also activities related to artificial intelligence, cloud computing, and scientific research. If signed into law by Governor Katie Hobbs, HB 2342 would ensure that people using high-powered computing technology in their homes cannot be restricted by zoning regulations or local ordinances.
At the heart of the bill is the concept of statewide preemption. HB 2342 declares that the regulation of computational power is a matter of statewide concern. This provision effectively overrides the authority of cities and counties to impose restrictions on residents who wish to run blockchain nodes, mine cryptocurrencies, or use their hardware for other complex computing tasks. The legislation revises sections of the Arizona Revised Statutes to reinforce this principle and to prevent any local rules from conflicting with the new state protections.
The implications of this bill go far beyond Bitcoin. While much of the attention has focused on digital currency, the law also opens the door for a wide range of decentralized technologies to flourish in Arizona. Individuals running Ethereum validators, researchers using powerful GPUs to train machine learning models, and cloud computing enthusiasts may all benefit from this legal clarity. With growing public interest in AI and edge computing, the measure could serve as a foundation for broader innovation and technological development across the state.
Arizona’s move comes as part of a broader trend toward supporting cryptocurrency and digital infrastructure at the state level. In recent years, Arizona lawmakers have proposed several forward-thinking measures, including the Arizona Strategic Bitcoin Reserve Act (SB 1025) and the Strategic Digital Assets Reserve Bill (SB 1373). While these bills have not yet become law, they demonstrate an ongoing interest in exploring ways to integrate Bitcoin and other digital assets into state operations, such as pension funds and public treasury reserves.
HB 2342 builds on this crypto-curious foundation by making Arizona one of the few states to grant explicit protections to individuals using computational power from home. Other states like Kentucky and Texas have made headlines for their pro-crypto legislation, but Arizona’s comprehensive approach to protecting a broad definition of computing activity may set it apart in the years ahead.
Legal experts suggest the bill could serve as a model for other states interested in digital rights. By treating computational power as a protected activity similar to internet access or electricity use, Arizona is laying the groundwork for a new kind of infrastructure policy. It prioritizes the right of individuals to access and use technology for personal, professional, or experimental purposes without needing permission from local authorities.
The bill’s supporters argue that decentralized technology is too important to be limited by inconsistent or overly restrictive local rules. They believe that establishing clear protections at the state level will attract talent, investment, and innovation. This argument holds particular weight in Arizona, which has worked to position itself as a technology-friendly state in recent years.
Critics of the bill have expressed concerns over potential noise, energy consumption, or neighborhood disruptions caused by at-home mining rigs and high-performance computing setups. However, HB 2342 does not prevent the state from enforcing general health and safety regulations, nor does it excuse residents from abiding by existing power usage and noise ordinances. It simply removes the ability of local governments to impose additional restrictions that specifically target computational power.
The bill’s passage also comes amid increasing national debate over digital sovereignty and decentralized systems. As federal regulators continue to examine the cryptocurrency space and artificial intelligence, many states are trying to find their own path forward. Arizona’s approach represents a vote of confidence in grassroots technology use and personal digital autonomy.
Governor Katie Hobbs now holds the power to either sign the bill into law or veto it. If she signs, Arizona will officially join a small but growing number of states that recognize the strategic importance of protecting digital infrastructure at the individual level. If she vetoes, the state could face renewed debate over where to draw the line between local control and technological freedom.
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