TLDR
- Utah’s legislature passed a blockchain bill but removed a key provision that would have allowed the state to invest in Bitcoin as a reserve
- The amended bill still protects individuals’ rights to run blockchain nodes, participate in staking, and exempts such activities from state money transmitter licensing
- The move comes shortly after President Trump’s March 6 executive order establishing a federal Strategic Bitcoin Reserve
- Texas and Arizona remain frontrunners in the state-level push to integrate Bitcoin into public finances
- Several states including Montana, South Dakota, and Wyoming have rejected similar bills due to concerns over Bitcoin’s volatility
Utah lawmakers have approved a blockchain bill that removes a key provision that would have allowed the state to invest public funds in Bitcoin. The legislation, known as H.B. 230—Blockchain and Digital Innovation Amendments, passed on March 7 after legislators amended it to eliminate language that would have authorized Utah’s state treasurer to allocate state-managed funds toward a Bitcoin reserve.
The Utah Senate approved the bill by a 19-7 vote. Later that night, the House concurred with the Senate’s changes, approving the bill 52-19, with four members abstaining.
The bill was initially introduced by Rep. Jordan Teuscher and sponsored in the Senate by Sen. Kirk Cullimore, both Republicans from Utah. Despite removing the Bitcoin reserve provision, the amended legislation still contains many blockchain-friendly measures.
The approved bill explicitly prohibits state and local governments from restricting the acceptance or custody of digital assets. It also protects individuals’ rights to run blockchain nodes and participate in staking activities.
Another key feature is that the bill exempts such activities from state money transmitter licensing requirements. This removes a hurdle that often made it hard for blockchain companies to operate.
More freedom for crypto mining operations
The legislation also limits local governments from imposing zoning and noise rules that unfairly target digital asset mining businesses in industrial zones. This provides more freedom for crypto mining operations in the state.
“There was a lot of concern with those provisions and the early adoption of these types of policies” Senator Cullimore explained during Utah’s March 7 floor session. “All of that has been stripped out of the bill.”
Up until March 7, Utah looked likely to become the first US state to adopt a Bitcoin reserve. The reserve clause would have authorized Utah’s treasurer to invest up to 5% in digital assets with a market cap above $500 billion.
The timing of Utah’s decision is worth noting. It comes shortly after President Trump’s March 6 executive order that established a Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile at the federal level.
If approved by Governor Spencer Cox, the Utah measure will officially take effect on May 7, 2025. The governor has not yet publicly indicated whether he intends to sign the bill into law.
While Utah steps back from creating a state Bitcoin reserve, other states are moving forward with similar plans. Texas and Arizona are currently leading this push to integrate Bitcoin into public finances.
Last Thursday, the Texas Senate approved a Bitcoin reserve bill by a 25-5 vote. During the session, Senator Charles Schwertner, the bill’s sponsor, highlighted Bitcoin’s value as a hedge against inflation.
“We don’t have stacks of dollar bills and safes like we did in medieval times,” Schwertner said. “What we have is digital currency.”
Several states planning on creating a Bitcoin reserve
Arizona is also advancing its own Bitcoin reserve proposal. Their bill, SB 1025, has already passed through the Senate Finance Committee’s third reading. It proposes that the state invest up to 10% of public funds in Bitcoin and other digital assets.
Oklahoma is following these states’ lead with its HB 1203, called the Strategic Bitcoin Reserve Act. This bill passed the House Government Oversight Committee by a 12-2 vote, showing strong support.
However, not all states are eager to embrace Bitcoin reserves. Several states have rejected similar bills due to concerns about Bitcoin’s price swings. Montana, South Dakota, Pennsylvania, North Dakota, and Wyoming have all voted down their Bitcoin reserve bills.
According to Bitcoin Reserve Monitor data, roughly 18 state proposals are still pending. Kansas, Iowa, Missouri, Illinois, Florida, Massachusetts, and Michigan are among those exploring the idea of adding Bitcoin to their financial reserves.
The federal government is also taking steps in this direction. President Trump’s recent executive order establishes a federal Strategic Bitcoin Reserve that will initially be funded with Bitcoin obtained through forfeitures in criminal cases.
Treasury and Commerce secretaries have been instructed to develop budget-neutral strategies to purchase more Bitcoin for this federal reserve. This shows growing interest in Bitcoin at multiple levels of government.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
