Utah pivots away from state Bitcoin reserve in landmark crypto legislation

Utah's HB230 bill advances crypto rights but omits state Bitcoin reserve plan.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Utah’s State Senate has stripped a provision for a state-backed Bitcoin reserve from its recently passed crypto bill.

The Blockchain and Digital Innovation Amendments bill (HB230) aims to establish clear guidelines for crypto use within the state.

The original draft included a provision allowing Utah to allocate up to 5% of public funds toward digital assets with a market capitalization exceeding $500 billion.

However, lawmakers removed the Bitcoin investment clause before final approval, altering Utah’s trajectory in the race to establish a state-owned Bitcoin reserve.

Despite this adjustment, HB230 remains a pro-crypto bill. It affirms Utah residents’ rights to self-custody digital assets, mine Bitcoin, run blockchain nodes, and engage in crypto staking—all key elements of the emerging industry.

According to the bill:

“[This bill] prohibits state and local governmental entities from restricting the acceptance or custody {and management} of digital assets… [It also] establishes the right to operate nodes, develop software, transfer digital assets, and participate in staking on blockchain protocols.”

The bill now awaits Governor Spencer Cox’s signature. If approved, it will become law on May 7, 2025.

Utah’s initial push for a Bitcoin reserve began in January amid a growing trend among US states exploring crypto as a financial asset.

Bitcoin reserve efforts went a step higher recently at the national level, as President Donald Trump signed an executive order to create a National Strategic Bitcoin Reserve and a Digital Asset Stockpile. The Bitcoin reserve will hold only BTC, while the stockpile will include various seized or forfeited digital assets.

Under this directive, the government plans to acquire Bitcoin through budget-neutral strategies, while the digital asset stockpile will grow through enforcement actions. The Bitcoin reserve is expected to serve as a long-term store of value, much like the gold vault at Fort Knox.

Mentioned in this article