On March 7, the Utah state Senate passed HB230, aimed at fostering blockchain and digital innovation. A key provision for a state-run Bitcoin reserve was removed before its final approval.
Passage of HB230
HB230 was designed to set regulatory frameworks for the custody and management of digital assets in Utah. The bill allowed the state treasurer to invest up to 5% of public funds in eligible digital assets with a market cap above $500 billion.
Why Was the Bitcoin Reserve Removed?
Initially, the proposal for a Bitcoin reserve gained momentum, passing through the House Committee on Economic Development and the Senate's second reading. However, it faced growing resistance. Senator Kirk A. Cullimore mentioned that there was hesitation about state-level crypto investments, with some lawmakers preferring a more cautious approach. Nevertheless, the bill's sponsor, Representative Jordan Teuscher, remained optimistic, tweeting: "Thrilled to announce HB230, which will allow the state to invest in digital assets. While Utah is the 11th state to introduce similar legislation, we will be the first to pass it."
Future of Crypto in Utah
Even without the Bitcoin reserve, HB230 introduces several key provisions that position Utah as a crypto-friendly state. The bill provides custody protections for digital asset holders, the right to mine Bitcoin, operate nodes, and participate in staking. State treasurers are now authorized to allocate public funds into eligible digital assets, excluding Bitcoin. Governor Spencer Cox is expected to sign the bill, solidifying Utah as a leader in blockchain policy.
Despite the exclusion of a Bitcoin reserve, Utah continues to lead in blockchain innovation. Meanwhile, other states like Texas, Arizona, and New Hampshire are moving forward with similar initiatives, exploring the possibility of creating cryptocurrency reserves.
