Utah Senate Passes Bitcoin Bill, But There’s a Catch

The Utah Senate passed its ambitious crypto bill, but without a key provision that would have made it the first state in the United States to hold Bitcoin in its treasury. While lawmakers supported broader blockchain-friendly policies, the idea of directly investing public funds into Bitcoin seems too far-fetched at this stage.

On March 7, the state’s Senate voted 19-7-3 to pass HB230, the “Blockchain and Digital Innovation Amendments” bill. The measure now awaits Governor Spencer Cox’s final approval.

Utah Senate Removes Reserve Clause

Initially, the bill included a reserve clause that would have allowed Utah’s state treasurer to invest up to 5% of certain public funds into cryptocurrencies. These assets needed a market cap exceeding $500 billion over the past calendar year. Currently, Bitcoin is the only cryptocurrency that meets this threshold. 

However, the reserve clause was removed in the third and final reading despite clearing a second Senate reading. The Utah House later agreed to the amendment in a 52-19-4 vote, signaling broad legislative agreement on the change.

Utah would have made history as the first state to establish a Bitcoin reserve if it had passed. Although the reserve clause has been scrapped, the bill still strengthens Utah’s stance on digital asset rights. It protects citizens’ ability to self-custody crypto, mine Bitcoin, operate nodes, and participate in staking. Lawmakers cited concerns about volatility, fiscal risks, and the lack of precedent for state-held Bitcoin as reasons for removing the reserve clause.

Bitcoin Reserve Gathers Momentum in Other States

With Utah stepping back from its reserve plan, attention now shifts to Arizona and Texas, states interested in the apex cryptocurrency and are advancing through legislative hurdles. Data from Bitcoin Laws shows that both states’ bills have successfully passed Senate committee votes and are awaiting a final floor vote.

Over 30 states across the US have proposed legislation related to Bitcoin or crypto reserves. Illinois, Iowa, Kentucky, Maryland, Massachusetts, New Hampshire, New Mexico, North Dakota, Ohio, and Oklahoma are among the states still considering these moves. Montana, North Dakota, Wyoming, South Dakota, and Pennsylvania have rejected Bitcoin reserve bills.