- Utah’s legislature passed H.B. 230 blockchain legislation, but removed a key provision that would have allowed state investment in Bitcoin.
- Despite the removal, the bill still contains provisions protecting blockchain activities and digital asset mining from excessive regulation.
- While Utah steps back from direct Bitcoin investment, states like Texas and Arizona are advancing similar reserve proposals, creating a divided landscape across the U.S.
Utah lawmakers have approved crypto-friendly legislation but stripped it of language that would have authorized direct state investment in Bitcoin. The H.B. 230 blockchain bill passed the Senate 19-7 on Friday, followed by House concurrence with a 52-19 vote, after legislators removed provisions that would have established a state Bitcoin reserve.
The bill, initially introduced by Rep. Jordan Teuscher (R-Utah) and sponsored in the Senate by Sen. Kirk Cullimore (R-Utah), still maintains significant protections for blockchain operations within the state. Despite removing the Bitcoin investment component, the legislation prohibits state and local governments from restricting digital asset custody or acceptance, protects individuals’ rights to run blockchain nodes, and exempts staking activities from state money transmitter licensing requirements.
For digital asset mining operations, the bill limits local governments from imposing discriminatory zoning or noise regulations against companies operating in industrial zones. If signed by Governor Spencer Cox, these provisions will take effect on May 7, 2025.
The Utah bill’s modification follows President Trump’s March 6 executive order establishing a Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile at the federal level, demonstrating broader governmental interest in cryptocurrency adoption despite Utah’s more cautious approach.
## U.S. States’ Bitcoin Push
While Utah retreats from direct Bitcoin investment, other states are accelerating efforts to include cryptocurrency in their financial strategies.
Texas has emerged as a frontrunner, with its Senate approving Bitcoin reserve legislation by a 25-5 vote last Thursday. The bill’s sponsor, Senator Charles Schwertner, advocated for Bitcoin’s potential as an inflation hedge, stating: “We don’t have stacks of dollar bills and safes like we did in medieval times. What we have is digital currency.”
Arizona is following a similar path, advancing legislation that would permit the state to invest up to 10% of public funds in Bitcoin and other digital assets. The proposal has already cleared the Senate Finance Committee’s third reading.
Oklahoma’s HB 1203, the Strategic Bitcoin Reserve Act, has also gained momentum, passing the House Government Oversight Committee with a 12-2 vote.
However, not all states are embracing cryptocurrency reserves. Montana, South Dakota, Pennsylvania, North Dakota, and Wyoming have rejected similar proposals, citing concerns about Bitcoin’s price volatility as their primary reason.
According to Bitcoin Reserve Monitor data, approximately 18 state proposals remain under consideration, including initiatives in Kansas, Iowa, Missouri, Illinois, Florida, Massachusetts, and Michigan, all exploring the possibility of incorporating Bitcoin into their financial reserves.
The patchwork of state approaches creates a divided regulatory landscape for cryptocurrency in the United States, with some states embracing digital assets while others maintain traditional investment strategies for public funds.
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