Key Takeaways
- Utah lawmakers removed a Bitcoin reserve clause from HB230.
- The bill now focuses on blockchain regulations and protections.
- Texas and Arizona remain frontrunners for Bitcoin reserve bills.
Utah lawmakers have passed HB230, the Blockchain and Digital Innovation Amendments bill, but not before removing a key provision that would have made Utah the first U.S. state with a Bitcoin reserve.
The bill initially proposed allowing the state treasurer to invest up to 5% of certain public funds—such as the General Fund Budget and State Disaster Recovery accounts—into Bitcoin and other qualifying digital assets.
However, during its final reading in the Senate, lawmakers removed the Bitcoin reserve clause, and the Utah House later concurred in a 52-19-4 vote.
According to Senator Kirk A. Cullimore, concerns over early adoption of such policies played a role in the decision.
HB230 now focuses on blockchain protections
With the Bitcoin reserve removed, HB230 now focuses on blockchain-friendly regulations.
The bill protects residents’ rights to:
- Self-custody Bitcoin and other digital assets
- Mine Bitcoin and run blockchain nodes
- Participate in staking without state interference
- Use digital assets for legal transactions
It also prohibits state and local governments from restricting digital asset payments.
Other states push forward with Bitcoin reserve bills
While Utah has dropped its Bitcoin reserve plan, Texas and Arizona are now leading the race to establish state-backed Bitcoin reserves.
Both states have Bitcoin reserve bills that have advanced through key legislative stages.
Utah joins Montana, North Dakota, Pennsylvania, South Dakota, and Wyoming in rejecting Bitcoin reserve proposals.
