On Friday evening, Utah lawmakers endorsed legislation designed to clarify regulations but removed a critical clause that would have permitted the state to directly invest public funds in cryptocurrencies.
H.B. 230—the Blockchain and Digital Innovation Amendments—secured a 19-7 vote in Utah’s Senate after lawmakers modified the bill to omit provisions that would authorize the state treasurer to invest state-controlled funds into a Bitcoin reserve.
That same night, the House agreed with the Senate’s alterations, passing the bill with a vote of 52-19, alongside four abstentions.
Originally put forward by Rep. Jordan Teuscher (R-Utah) and supported in the Senate by Sen. Kirk Cullimore (R-Utah), the modified legislation still retains important blockchain-supportive provisions.
The bill explicitly forbids state and local authorities from restricting the acceptance or custody of digital assets, safeguards the rights of individuals to operate blockchain nodes, engage in staking, and exempts such activities from state money transmitter licensing obligations.
Moreover, the legislation constrains local governments from imposing zoning and noise regulations that unfairly impact digital asset mining operations in industrial areas.
This development follows President Trump’s March 6 executive order forming a Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile at the federal level, indicative of a wider governmental initiative towards cryptocurrency integration.
Governor Spencer Cox has not yet publicly stated whether he plans to sign the bill into law. If enacted, the measure is set to take effect on May 7, 2025.
U.S. States’ Bitcoin Push
While Utah is stepping back, numerous other states are intensifying their efforts to incorporate Bitcoin into public financial structures.
Texas and Arizona are leading this charge.
Last Thursday, the Texas Senate passed a bill by a 25-5 vote, as Senator Charles Schwertner, the bill’s sponsor, stated that the scarcity of Bitcoin and its potential as a hedge against inflation render it a critical asset for the state’s financial future.
“We no longer have piles of cash in safes like in medieval times,” Schwertner remarked. “What we possess now is digital currency.”
Arizona is also making strides with its own Bitcoin reserve initiative.
Arizona’s SB 1025, which has successfully passed the Senate Finance Committee’s third reading, aims for the state to invest up to 10% of public funds in Bitcoin and other digital assets.
Following the examples set by Arizona and Texas, Oklahoma’s HB 1203, the Strategic Bitcoin Reserve Act, was approved by the House Government Oversight Committee with a vote of 12-2.
However, not all states are eager to adopt Bitcoin-backed reserves.
States such as Montana, South Dakota, Pennsylvania, North Dakota, and Wyoming have outright rejected similar proposals due to concerns regarding Bitcoin’s volatility.
Around 18 state proposals are still outstanding, according to data from Bitcoin Reserve Monitor, with states like Kansas, Iowa, Missouri, Illinois, Florida, Massachusetts, Michigan, and others considering the potential of integrating Bitcoin into their financial reserves.
Edited by Sebastian Sinclair
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