Utah Drops Bitcoin Reserve Plan as Crypto Bill Advances
State Moves Forward with Pro-Crypto Legislation but Abandons Bold Reserve Proposal
Utah has taken a significant step toward integrating cryptocurrency into its legal framework with the passage of HB230, the "Blockchain and Digital Innovation Amendments" bill. However, a key provision that would have established the nation’s first state-backed Bitcoin reserve was removed before final approval.
Initially, the bill proposed allowing the state treasurer to allocate up to 5% of certain public funds into cryptocurrencies with a market capitalization exceeding $500 billion—effectively targeting Bitcoin as the sole candidate. If passed in its original form, Utah would have become the first U.S. state to hold Bitcoin as part of its financial reserves.
Despite dropping this ambitious provision, the final version of HB230 still establishes a forward-thinking regulatory framework for blockchain and cryptocurrency activities. The bill protects Utah residents' rights to self-custody crypto, mine Bitcoin, run blockchain nodes, and participate in staking without state interference.
The Senate approved the bill in a 19-7-3 vote on Friday, sending it to Governor Spencer Cox for final approval.
With Utah stepping back from creating a Bitcoin reserve, attention now shifts to states like Arizona and Texas, where similar legislation is under consideration. According to data from Bitcoin Laws, over 30 states have explored Bitcoin or crypto reserve policies, though several—including Montana, North Dakota, Wyoming, South Dakota, and Pennsylvania—have rejected such measures.
If signed into law, HB230 will solidify Utah’s position as a crypto-friendly state, even without a state-backed Bitcoin reserve.
