Utah Blockchain Bill Passes Without Bitcoin Reserve Provision

TLDR

• Utah Senate passed a blockchain bill but removed key provision that would have created a state Bitcoin reserve
• The bill still protects citizens’ rights to mine Bitcoin, run nodes, and stake crypto
• President Trump simultaneously established a federal Strategic Bitcoin Reserve via executive order
• Texas and Arizona are now frontrunners for establishing state Bitcoin reserves
• At least 25 similar state bills remain active while 6 states have rejected Bitcoin reserve legislation

Utah legislators have passed a blockchain bill that removes a key provision that would have allowed the state to invest in Bitcoin. The bill still provides protection for crypto activities but no longer includes plans for a state Bitcoin reserve. This comes as other states and the federal government make moves toward Bitcoin investments.

The HB230 “Blockchain and Digital Innovation Amendments” bill passed Utah’s Senate with a 19-7-3 vote on March 7. The House later agreed with the Senate’s changes, approving it 52-19 with four members abstaining.

The original bill would have allowed Utah’s treasurer to invest up to 5% in digital assets with market caps above $500 billion. Currently, only Bitcoin meets this requirement.

“There was a lot of concern with those provisions and the early adoption of these types of policies,” said Senator Kirk A. Cullimore during Utah’s floor session. The reserve clause was removed in the final reading.

The amended bill still protects Utah citizens. It bars state and local governments from restricting the acceptance or custody of digital assets.

It also supports the rights of individuals to run blockchain nodes and participate in staking. These activities are exempt from state money transmitter licensing requirements.

The legislation limits how local governments can regulate crypto mining businesses. This prevents unfair zoning and noise rules targeting digital asset miners operating in industrial zones.

The bill now awaits Governor Spencer Cox’s signature. If approved, it will take effect on May 7, 2025.

Utah was expected to become the first US state with a Bitcoin reserve. Now Texas and Arizona lead this race with bills that have passed through Senate committees.

The Bitcoin Reserve Race Heats Up

Texas lawmakers recently approved their bill with a 25-5 vote. Senator Charles Schwertner, who sponsored the bill, argued that Bitcoin’s scarcity makes it valuable for the state’s financial future.

“We don’t have stacks of dollar bills and safes like we did in medieval times,” Schwertner said. “What we have is digital currency.”

Arizona is also moving forward with its own Bitcoin reserve proposal. Their SB 1025 has passed the Senate Finance Committee’s third reading.

The Arizona bill would allow the state to invest up to 10% of public funds in Bitcoin and other digital assets. This represents a larger allocation than what Utah had proposed.

Oklahoma has joined the movement with its HB 1203, the Strategic Bitcoin Reserve Act. It passed the House Government Oversight Committee by a 12-2 vote.

Not all states support Bitcoin reserves. Montana, South Dakota, Pennsylvania, North Dakota, and Wyoming have rejected similar bills due to concerns about Bitcoin’s volatility.

Out of 31 Bitcoin reserve state bills that were introduced, 25 remain active. States like Iowa, Kentucky, Maryland, Massachusetts, New Hampshire, and Ohio still have live bills under consideration.

The state-level activity follows President Donald Trump’s March 7 executive order. This order establishes a federal Strategic Bitcoin Reserve.

The federal reserve will start with Bitcoin obtained through criminal case forfeitures. The Treasury and Commerce secretaries must develop budget-neutral strategies to acquire more Bitcoin.

According to Bitcoin Laws data, about 18 state proposals are still pending. Kansas, Iowa, Missouri, Illinois, Florida, Massachusetts, and Michigan are exploring Bitcoin investments for their financial reserves.

The Utah bill, even without the reserve provision, represents a step toward crypto-friendly policies. It provides basic protections for Bitcoin mining, node operation, and staking activities.

As more states consider Bitcoin reserves, the regulatory landscape continues to evolve. Bitcoin advocates watch closely as these bills move through state legislatures across the country.