The recent decision of Utah’s State Senate to pass a bill connected to cryptocurrency, albeit with some significant alterations, is a topic that has sparked immense interest among industry experts and enthusiasts alike. This modified legislation, which no longer permits the state treasury to invest in digital assets, is making its way to Utah Governor Spencer Cox’s desk awaiting his signature to become law.
Utah’s Bitcoin Bill: An Unexpected Turn
On March 7, the state senate of Utah gave a green signal to House Bill 230 (HB230), popularly referred to as the “Blockchain and Digital Innovation Amendments”. This development was not without a twist, as legislators revised the bill to eliminate the clause that provided the state the ability to invest in digital assets.
The preliminary version of the legislation empowered the state treasurer to use up to 5% of selected public reserve funds for investment in “qualifying digital assets” while stipulating guidelines for their safekeeping and oversight. To be deemed suitable for investment, a digital asset had to uphold a market capitalization exceeding $500 billion over the preceding 12 months and could not be a stablecoin. Among all cryptocurrencies, only Bitcoin fulfilled these specifications.
Utah Representative Jordan Teuscher was the person behind the introduction of HB230 on January 21. The bill cruised through the House of Representatives voting 8-1 before heading to the Senate for its initial reading. After passing the second reading, the Senate decided to remove the Reserve clause during its third reading due to concerns over its provisions and the premature adoption of such policies, as expressed by Senator Kirk A. Cullimore during the March 7 floor session.
Omitting the Bitcoin reserve clause, the bill now only sets down fundamental custody protections for citizens of Utah. It also establishes the legal right to mine Bitcoin, operate a node, develop software, and participate in staking without regulatory intervention.
According to Bitcoin Laws, “This bill lays down a comprehensive blueprint for digital asset regulation and blockchain technology in Utah, offering clear definitions and safeguards for individuals and companies interacting with digital assets. (…) It prevents state and local government bodies from restricting a person’s ability to accept digital assets as payment or employ self-hosted or hardware wallets.”
Post amendment, HB230, now devoid of the Strategic Bitcoin Reserve (SBR) clause, awaits Governor Spencer Cox’s signature to officially become law after it passed the Senate with a tally of 19-7-3 votes.
Other US States Continue Pursuit of Strategic BTC Reserve
Regardless of the fate of Utah’s Bitcoin Reserve, several other US states are still competing in the race to create their Strategic Bitcoin Reserve. Information from Bitcoin Laws reveals that Arizona has two outstanding BTC reserve bills pending a final Senate floor vote.
Simultaneously, the Texas Strategic Bitcoin Reserve bill, introduced earlier this year, got approved by the Senate committee at February-end and is now in line for its ultimate vote. New Hampshire and Oklahoma have also made progress with their respective proposals for an SBR at their state level.
Meanwhile, bills from a range of states, including Florida, Georgia, Illinois, Iowa, Kentucky, Maryland, Massachusetts, New Mexico, North Dakota, Ohio, and others, remain live but are in the initial stages of their legislative journey.
In related news, US President Donald Trump signed an executive order to officially establish a Strategic Bitcoin Reserve and a “Digital Asset Stockpile.” The reserve will be “capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings,” announced White House AI & Crypto Czar David Sacks.
This crucial development followed President Trump’s Mach 2 declaration of a “US Crypto Reserve” to uplift the industry “after years of corrupt attacks by the Biden Administration.”
The bitcoinist editorial process prioritizes delivering thoroughly vetted, correct, and unbiased content. Our rigorous sourcing standards are maintained, and each page undergoes a meticulous review by our team of leading technology professionals and experienced editors. This rigorous process ensures the integrity, relevance, and value of our content for our readers.
FAQs
What is the current status of the Utah Bitcoin Bill?
The Utah Bitcoin Bill, previously known as House Bill 230 (HB230), has been passed by the state Senate. However, it underwent significant changes, including the removal of the clause that allowed the state to invest in digital assets. It now awaits the signature of Utah Governor Spencer Cox to become law.
What changes were made in the Utah Bitcoin Bill?
The main amendment in the Utah Bitcoin Bill was the removal of the Reserve clause, which initially permitted the state to invest in digital assets. The bill now primarily establishes basic custody protections for individuals in Utah and provides the legal right to partake in various cryptocurrency-related activities without regulatory overreach.
What other states in the US are trying to set up a Strategic Bitcoin Reserve?
Other US states such as Arizona, Texas, New Hampshire, and Oklahoma have proposed bills to establish their own Strategic Bitcoin Reserve. However, these bills are at different stages of the legislative process and are yet to be ratified.
What recent developments have occurred at the federal level regarding a Strategic Bitcoin Reserve?
US President Donald Trump recently signed an executive order to formally establish a Strategic Bitcoin Reserve and a “Digital Asset Stockpile”. This move was announced shortly after President Trump’s declaration of a “US Crypto Reserve”, aimed at uplifting the industry.
