Nikolas Sargeant
Utah's Senate has passed a modified version of the Bitcoin bill, removing a key provision that would have allowed state investment in cryptocurrency. The March 7 vote of 19-7-3 approved HB230, the "Blockchain and Digital Innovation Amendments," but without the groundbreaking reserve clause that had drawn national attention. This amended bill now awaits Governor Spencer Cox's signature.
Despite dropping the innovative reserve component, the legislation still strengthens Utah's position on digital assets by protecting citizens' rights to self-custody cryptocurrency, mine Bitcoin, operate nodes, and participate in staking activities. The original provision would have made Utah the first state to hold Bitcoin in its treasury, establishing a significant precedent.
Financial Prudence Guides Decision-Making
The initial bill contained language permitting the state treasurer to invest up to 5% from five state accounts into digital assets with market capitalizations exceeding $500 billion over the previous calendar year. Currently, only Bitcoin meets this threshold requirement.
Although the bill cleared a second Senate reading with the reserve clause intact, lawmakers ultimately removed it during the final reading. The House subsequently agreed to this amendment with a 52-19-4 vote, demonstrating broad legislative consensus around the more conservative approach.
This decision reflects growing concerns about volatility, long-term fiscal responsibility, and the unprecedented nature of government-held cryptocurrency reserves. While Utah legislators broadly support blockchain-friendly policies, direct investment of public funds into Bitcoin appeared too risky at this juncture.
Other States Continue Bitcoin Reserve Pursuits
With Utah stepping back, focus shifts to Arizona and Texas, where similar Bitcoin reserve legislation continues advancing through their respective state legislatures. According to Bitcoin Laws data, both states' proposals have passed Senate committee votes and await final floor consideration.
Nationwide, 31 states have introduced Bitcoin reserve legislation, with 25 bills still active. Illinois, Iowa, Kentucky, Maryland, Massachusetts, New Hampshire, New Mexico, North Dakota, Ohio, and Oklahoma continue evaluating such measures, while efforts in Pennsylvania, Montana, and North Dakota have failed to progress.
Federal Government Establishes Strategic Bitcoin Holdings
At the federal level, President Trump recently signed an executive order creating a Strategic Bitcoin Reserve. This initiative will initially utilize Bitcoin obtained through criminal forfeitures, while Treasury and Commerce Departments develop budget-neutral approaches to expand these holdings.
This federal action signals a significant shift in Washington's cryptocurrency approach. While state governments remain cautious about holding Bitcoin in their treasuries, the federal government's proactive stance may eventually provide the precedent needed for wider state-level adoption in the future.
