Utah’s Senate Approves Bitcoin Bill — But Strips Out Investment Clause

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated: 

March 9, 2025

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Utah’s ambitious Bitcoin bill has cleared the state Senate, but a key provision was removed before approval.

Lawmakers have scrapped a provision that would have made Utah the first US state to hold Bitcoin in its treasury, significantly altering the scope of the legislation.

On March 7, the Senate voted 19-7-3 to pass HB230, the “Blockchain and Digital Innovation Amendments” bill. The measure now heads to Governor Spencer Cox’s desk for final approval.

The bill still strengthens Utah’s stance on digital asset rights. It protects citizens’ ability to self-custody crypto, mine Bitcoin, operate nodes and participate in staking. However, it no longer includes a groundbreaking reserve clause that had sparked national attention.

Concerns Over Public Fund Safety Lead to Bitcoin Reserve Reversal

Originally, the bill included a clause allowing the Utah state treasurer to invest up to 5% of funds from five state accounts into digital assets. These assets needed a market cap exceeding $500b over the past calendar year.

Currently, Bitcoin is the only cryptocurrency that meets this threshold. If passed, Utah would have made history as the first state to establish a Bitcoin reserve.

However, despite clearing a second Senate reading, the reserve clause was removed in the third and final reading. The Utah House later agreed to the amendment in a 52-19-4 vote, signaling broad legislative agreement on the change.

The removal of the Bitcoin reserve clause reflected growing concerns among lawmakers about the risks of state-backed digital asset investments. Questions around volatility, long-term fiscal responsibility, and the lack of precedent for government-held Bitcoin reserves contributed to hesitation.

While Utah lawmakers have supported broader blockchain-friendly policies, the idea of directly investing public funds into Bitcoin proved too ambitious at this stage.

Bitcoin Reserve Movement Gathers Momentum in Other States

With Utah stepping back, attention now turns to Arizona and Texas, where Bitcoin reserve bills are advancing through legislative hurdles. Data from Bitcoin Laws shows that both states’ bills have successfully passed Senate committee votes and are awaiting a final floor vote.

Across the country, 31 states have introduced Bitcoin reserve bills, with 25 still active. Illinois, Iowa, Kentucky, Maryland, Massachusetts, New Hampshire, New Mexico, North Dakota, Ohio and Oklahoma are among the states still considering such measures. Meanwhile, efforts in Pennsylvania, Montana, Kentucky and North Dakota have already failed.

Despite Utah’s decision, momentum for state-backed Bitcoin reserves is far from slowing down.

US Government Enters the Bitcoin Game With Strategic Reserve Plan

At the federal level, Bitcoin’s role in public finance took a major turn on March 7, when President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve. This new reserve will be seeded using Bitcoin obtained from criminal forfeitures, while the Treasury and Commerce Departments have been tasked with crafting budget-neutral strategies to expand holdings.

The move signals a shift in Washington’s approach to digital assets. While many states remain hesitant to hold Bitcoin in their treasuries, the federal government is now actively building its own strategic reserve—potentially paving the way for future state-level adoption.