Utah Passes Bitcoin Bill, But Eliminates Reserves
The state of Utah has passed the “Blockchain and Digital Innovation Amendments” (HB230), which would allow citizens to store, mine, and participate in staking Bitcoin. However, the most important provision, which would have established a state-level Bitcoin reserve, was removed at the last minute, causing Utah to miss out on becoming the first state in the US to own Bitcoin in reserve.
HB230 – Progress But Not Complete
The Utah Senate passed HB230 on March 7 by a vote of 19-7-3, and the House of Representatives approved the amendment by a vote of 52-19-4. The bill originally included a provision allowing the state treasurer to invest up to 5% of digital assets in Bitcoin, as long as the asset had a market capitalization of over $500 billion in the previous year – a requirement that only Bitcoin currently meets.
However, after two rounds of voting, the Bitcoin reserve provision was eliminated on third reading. As such, HB230 now focuses on basic rights such as:
- Protecting Utah citizens’ right to custody of digital assets
- Legalizing Bitcoin mining
- Recognizing the right to run nodes and participate in staking
Senator Kirk A. Cullimore, one of the bill’s sponsors, said: “There were a lot of concerns about the early adoption of these policies, and in the end, all of those provisions were eliminated.”
The Race for State Bitcoin Reserves Continues
Before the reserve provision was eliminated, Utah was expected to become the first state in the US to establish a Bitcoin reserve fund, according to Dennis Porter, CEO of the Satoshi Action Fund. Currently, Arizona and Texas are the two states most likely to pass similar bills. Both states have passed Senate committees and are awaiting a final vote.
According to data from Bitcoin Laws, a total of 31 state-level Bitcoin reserve bills have been proposed in the US, including:
- 25 bills are still under consideration, including in Illinois, Iowa, Kentucky, Maryland, Massachusetts, New Hampshire, New Mexico, North Dakota, Ohio, and Oklahoma.
- Some bills have failed, such as in Pennsylvania, Montana, Kentucky, and North Dakota.
US Federal Government Establishes Bitcoin Reserve
While states are still debating Bitcoin reserve policy, the federal government has taken a decisive step. On March 7, President Donald Trump signed an executive order establishing the Strategic Bitcoin Reserve. The fund will start with Bitcoin seized from criminal cases, while the Treasury and Commerce Departments will explore strategies to purchase additional Bitcoin in a “budget-neutral” manner – that is, without using taxpayer money.
Conclusion
Although Utah passed HB230, the removal of the Bitcoin reserve provision has cost the state its chance to pioneer in this field. However, the race is still on, with Arizona and Texas being the two most promising candidates.
Meanwhile, the US federal government has gone one step ahead with the official decision to establish a Bitcoin reserve fund, opening a new direction for the crypto industry in the future.
