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Utah Bitcoin Bill Passes, but Key Provision Fails

Utah Bitcoin Bill Passes, but Key Provision Fails

Regulatory News

Utah's Bitcoin Bill: A Partial Victory

Utah's Senate passed HB230, the "Blockchain and Digital Innovation Amendments" bill, with a significant alteration. The bill, initially designed to make Utah the first US state with a Bitcoin reserve, now focuses on consumer protections instead.

Key Changes and Outcomes

  • The bill grants Utah citizens basic custody protections.
  • It affirms the right to mine Bitcoin (BTC), run a node, and participate in staking.
  • The proposed 5% Bitcoin reserve, initially part of the bill, was removed due to concerns from lawmakers.
  • The final vote in the Senate was 19-7-3, sending the amended bill to Governor Spencer Cox for approval.

Senator Kirk A. Cullimore, a bill sponsor, cited concerns regarding the early adoption of such policies as the reason for the reserve clause's removal. The House concurred with the amendment, voting 52-19-4.

The Race for State-Level Bitcoin Reserves Continues

While Utah will not establish a Bitcoin reserve at this time, other states are still pursuing similar legislation. Arizona and Texas have bills moving through the legislative process. According to Bitcoin Laws data, 25 out of 31 initially introduced Bitcoin reserve bills remain active. However, several bills, including those in Montana, Kentucky, and North Dakota have failed.

Federal Action on Bitcoin Reserves

On the federal level, President Donald Trump signed an executive order establishing a federal Strategic Bitcoin Reserve on March 7th. This reserve will be funded through seized Bitcoin from criminal cases and budget-neutral acquisition strategies.

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