The Utah Senate has made a noteworthy move towards incorporating crypto into the state’s legal system by passing a crypto bill known as HB230, otherwise referred to as “Blockchain and Digital Innovation Amendments”. However, a significant amendment was made before the bill’s final approval, leading to the removal of a provision that could have positioned Utah as the first U.S. state to have its own crypto reserve.
Originally, the bill included a reserve clause that would have permitted Utah’s state treasurer to invest up to 5% of specific public funds into cryptocurrencies with a market capitalization over $500 billion throughout the previous year. This clearly was aimed at Bitcoin, the only cryptocurrency that meets this criteria.
While the state crypto reserve provision — arguably the most ambitious part of the bill — was excluded before its final passage, the revised HB230 still creates a progressive structure that encourages citizens’ participation in crypto and blockchain activities. The final version of HB230 allows state residents to self-custody their crypto assets, mine Bitcoin, operate blockchain nodes, and engage in staking without interference.
After a 19-7-3 vote in favor of the bill on Friday, it now awaits Governor Spencer Cox’s signature to become law. Before the removal of the reserve clause, Utah was considered a leader amongst U.S. states in the race to establish a Bitcoin reserve. With this provision now out of the picture, focus is likely to shift to states like Arizona and Texas, where Bitcoin reserve bills are reportedly nearing approval, according to data from Bitcoin Laws.
More than 30 states have proposed legislation related to Bitcoin or crypto reserves. Among them, Montana, North Dakota, Wyoming, South Dakota, and Pennsylvania have definitively rejected Bitcoin reserve bills.
Disclaimer: This article is for informational purposes only. It should not be considered as financial, investment, legal, or tax advice. Always conduct your own research before making any investment decisions.
