Nikolas Sargeant
The Arizona Senate has approved the Bitcoin Mining Rights Bill with a 17-12 vote, moving the state closer to establishing legal protections for cryptocurrency miners and node operators.
On April 10, the state Senate passed HB 2342, legislation that shields individuals running blockchain nodes or mining digital assets from restrictive zoning regulations. The approved bill has now been forwarded to Governor Katie Hobbs for final authorization.
Arizona's Home-Based Crypto Mining Protection Advances
Arizona's HB 2342 specifically "prohibits cities, towns, and counties from banning or restricting individuals from using computational power or running blockchain nodes in their own homes," according to the amended legislation.
State Representative Teresa Martinez introduced the bill in January, defining computational power to encompass mining activities and node operations. The legislation extends beyond cryptocurrency to cover artificial intelligence workloads, cloud computing, and scientific research applications.
It's worth noting that Governor Hobbs previously rejected legislation that would have limited municipalities' ability to tax cryptocurrency mining operations.
Arizona's Expanding Cryptocurrency Initiatives
Arizona has been making strides toward establishing a state-level cryptocurrency reserve, with two important bills clearing the House Rules Committee last month.
"The bills have now passed their assigned committees, meaning they should be headed for a full floor vote." If enacted, these measures would allow Arizona to utilize seized cryptocurrency and invest up to 10% of state treasury or retirement funds into Bitcoin.
The legislation also includes provisions for lending these digital assets to generate returns, provided such activities don't increase financial risks.
Despite the positive momentum these bills have gained in the legislature, they may face significant hurdles at the executive level. Governor Katie Hobbs, a Democrat, has vetoed approximately 22% of bills in 2024 (73 out of 330), meaning "roughly one in five of the bills that made it through both chambers reached her desk and were ultimately vetoed."
