Utah’s state Senate has recently passed the HB230 “Blockchain and Digital Innovation Amendments,” but the legislation is now devoid of its most significant feature: the proposed Bitcoin reserve. Initially, this clause was intended to position Utah as the first U.S. state to establish its own Bitcoin reserve, enabling the state’s treasurer to allocate up to 5% of certain digital assets. However, this specific element was omitted during the bill’s final reading after concerns were raised regarding the rapid integration of such policies.
Instead, the passed bill focuses on providing fundamental protections for Utah citizens engaged in Bitcoin activities. These provisions include the right to mine Bitcoin , operate nodes, and participate in staking. The bill passed with a vote of 19-7-3 on March 7 and will now move to Governor Spencer Cox for final approval.
Despite early optimism about the reserve clause, it ultimately did not survive. The second reading of the clause saw support, but as it reached the final stages, it faced significant pushback, leading to its removal. A representative from the Senate highlighted that after discussions, there was considerable hesitance regarding the proposed reserve provisions, which likely influenced the decision to eliminate them from the legislation.
Meanwhile, other states are pursuing similar initiatives aimed at establishing Bitcoin reserves. Bills currently in progress in Arizona and Texas have garnered attention, having passed their respective Senate committees and now awaiting final floor votes. Out of 31 proposed state bills concerning Bitcoin reserves, a majority remain active, showcasing a growing interest in cryptocurrency legislation across the country.
In a broader context, the conversation around Bitcoin reserves has intensified nationally, coinciding with a recent executive order signed by the President that calls for the establishment of a federal Strategic Bitcoin Reserve. This reserve will utilize Bitcoin obtained from criminal case forfeitures and aims to explore budget-neutral strategies for additional acquisitions of Bitcoin .
