Utah’s Senate passes Bitcoin bill — but scraps key provision
Utah’s recent legislative maneuvering surrounding cryptocurrency marks a significant albeit controversial chapter in the state’s approach to digital assets. The HB230 “Blockchain and Digital Innovation Amendments” was passed by the Utah Senate on March 7, but not without notable alterations. The most significant change was the removal of the proposed reserve clause that would have positioned Utah as the pioneering US state to maintain its own Bitcoin reserve.
Initially, this clause was designed to empower Utah’s treasurer to invest up to 5% of digital assets with a market capitalization exceeding $500 billion across five state accounts—Bitcoin being the only digital asset meeting this criterion at the time. However, as the bill progressed, concerns regarding early adoption of such measures led to its exclusion during the third reading. Consequently, the legislation now primarily offers fundamental rights to residents for custody protections, Bitcoin mining, node operation, and staking, which are essential aspects of the broader blockchain ecosystem.
The Senate passed the bill with a vote tally of 19-7-3, indicating a level of support, albeit amid discussions on the implications of state-level cryptocurrency reserves. Senator Kirk A. Cullimore, one of the bill’s sponsors, acknowledged the removal of the reserve clause, expressing there was considerable doubt regarding the implications of early adoption of such policies.
This legislative shift has turned Utah’s ambitions, once seen as a possible model for Bitcoin acceptance, towards a more cautious approach. Until recently, experts like Dennis Porter, CEO of the Satoshi Action Fund, had expressed optimism that Utah would lead the US in establishing a state Bitcoin reserve. However, the focus now shifts to other states such as Arizona and Texas, which are vying to become the first to legislate their own Bitcoin reserves. Both states have seen bills successfully pass through Senate committees and await final floor votes.
Currently, 25 out of 31 Bitcoin reserve bills remain active across various states, including Illinois, Iowa, Kentucky, and Massachusetts. However, several proposals have either failed or been abandoned in states like Pennsylvania and Montana, underscoring the contentious and evolving nature of cryptocurrency legislation in the US.
In a broader context, the focus on Bitcoin reserves takes on additional complexity against the backdrop of federal developments. Notably, on the same day Utah’s bill passed, President Donald Trump signed an executive order creating a federal Strategic Bitcoin Reserve, which is set to utilize Bitcoin obtained via criminal forfeiture processes. This federal initiative directs the Treasury and Commerce secretaries to devise budget-neutral approaches to acquiring Bitcoin, contrasting sharply with the cautious stance exhibited at the state level.
With state and federal legislative efforts diverging, the landscape for cryptocurrencies remains fluid, and all eyes will be on how subsequent bills evolve and what legislative frameworks will emerge in the quest to integrate Bitcoin into the fabric of state financial operations.
