On March 7, the Utah State Senate passed HB230, aiming to increase blockchain adoption, though its pivotal Bitcoin reserve section was omitted.
Structure and Intent of HB230
HB230 was designed to set regulatory frameworks for digital asset custody, management, and compliance in Utah. One of its most ambitious proposals was to allow the state treasurer to invest up to 5% of public funds in eligible digital assets with a market cap above $500 billion. However, the Bitcoin reserve clause was removed before final approval.
Why Was the Bitcoin Reserve Removed?
The proposal initially gained momentum, passing Utah’s House Committee on Economic Development and clearing the Senate’s second reading. However, resistance grew closer to the law. Senator Kirk A. Cullimore noted hesitation regarding state-level crypto investments, with a cautious approach being preferred by some lawmakers. Despite this, the bill’s sponsor, Representative Jordan Teuscher, expressed optimism on Twitter, stating Utah would be the first to pass such legislation, maintaining its leadership in blockchain innovation.
Other US States Move Toward Bitcoin Reserves
Utah's decision to exclude the Bitcoin reserve from its bill does not mean the idea is dead. Other states like Texas, Arizona, and New Hampshire are progressing with similar ideas. Texas recently passed SB 21, a bill allowing the state to invest public funds in Bitcoin and other digital assets. Arizona and New Hampshire also have Bitcoin reserve bills under review.
Though Utah abandoned establishing a Bitcoin reserve, the passing of HB230 marks a commitment to lead in blockchain policy and innovation.
