March 11, 2025 – Utah’s State Senate has passed House Bill 230 (HB230), also known as the “Blockchain and Digital Innovation Amendments,” but removed a crucial clause that would have allowed the state treasury to invest in Bitcoin. The amended bill now awaits Governor Spencer Cox’s signature to become law.
Bitcoin Investment Clause Removed
Initially, HB230 permitted the state treasurer to invest up to 5% of certain public reserve funds in “qualifying digital assets.” However, only Bitcoin met the criteria, requiring a cryptocurrency to maintain a $500 billion market cap over 12 months and not be a stablecoin.
Introduced by Utah Representative Jordan Teuscher on January 21, 2025, the bill passed the House of Representatives 8-1 before moving to the Senate Revenue and Taxation Committee, where it was approved 4-2-1 on February 20.
Despite clearing the second reading in the full Senate, lawmakers removed the Bitcoin Reserve clause on the third reading due to concerns about early adoption risks. Senator Kirk A. Cullimore stated during the March 7 session that there was “a lot of concern with those provisions and the early adoption of these types of policies.”
What’s Left in the Bill?
Although Utah will not be investing in Bitcoin, HB230 still establishes legal protections for digital asset holders in the state. The bill ensures:
- The right to mine Bitcoin, run a node, and develop blockchain software.
- The right to stake cryptocurrencies without excessive regulatory interference.
- Protection against government restrictions on using digital assets for payments.
- Clear definitions for digital assets and blockchain technology regulation.
The bill passed the Senate with a 19-7-3 vote and now heads to Governor Spencer Cox for approval.
The US Strategic Bitcoin Reserve Race Continues
While Utah opted out of creating a Strategic Bitcoin Reserve (SBR), other US states remain in the race. According to Bitcoin Laws, Arizona has two BTC reserve bills awaiting a final Senate vote. Meanwhile, Texas’ Strategic Bitcoin Reserve legislation, introduced in January, passed its Senate committee in February and awaits final approval.
Other states pushing for a Bitcoin Reserve include:
- New Hampshire and Oklahoma, which have advanced state-level proposals.
- Florida, Georgia, Illinois, Iowa, Kentucky, Maryland, Massachusetts, New Mexico, North Dakota, and Ohio, where bills are in early stages.
At the federal level, President Donald Trump recently signed an executive order to create a US Strategic Bitcoin Reserve and a Digital Asset Stockpile. White House AI & Crypto Czar David Sacks stated the reserve would be funded by Bitcoin seized from criminal and civil forfeiture cases. This follows Trump’s March 2 announcement of a US Crypto Reserve to strengthen the industry.
With Utah out of the race, the competition among states to establish the first Strategic Bitcoin Reserve intensifies.
Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or investment advice. Readers should conduct their own research before making any financial decisions.
