Utah Drops Bitcoin Reserve Clause from Blockchain and Digital Innovation Amendments Bill

A clause in Utah's Blockchain and Digital Innovation Amendments bill, which would establish a Bitcoin reserve, was dropped right before the final Senate vote.

A clause in Utah’s, US, Blockchain and Digital Innovation Amendments bill, which would have created a Bitcoin reserve, has been dropped ahead of the final Senate vote.

The State Senate passed the bill, also known as House Bill 230, following a 19-7-3 vote on March 7. However, this version no longer includes the Bitcoin reserve clause. The bill will now go to Governor Spencer Cox for approval.

Initially, the bill proposed allowing Utah's state treasurer to invest up to 5% of certain public funds, such as the state treasury and the state retirement system, into Bitcoin and other qualifying digital assets.

Utah was leading the Bitcoin reserve race and was widely expected to be the first U.S. state to pass such a law due to its short 45-day legislative window and strong political momentum.

However, the clause was scrapped during the final Senate reading on March 7, and the House later concurred with the amendment in a 52-19-4 vote, sealing its removal from the bill.

With the reserve clause dropped, HB230 now includes provisions that protect the right to mine Bitcoin, run a node, and participate in staking, ensuring residents can engage in blockchain activities without regulatory overreach. It also establishes basic custody protections, giving Utahns clearer rights when holding digital assets.

Now, the Bitcoin reserve race has narrowed down to Texas and Arizona, with both states making progress on their own legislation.

According to Bitcoin Lawss, two Arizona Senate bills—no. 1066, "concerning the investment of state treasury funds," and no. 1166, "concerning the participation of the state retirement system in a new technology and innovation fund and revising initiative approved by voters,"—have already cleared committee stages and are awaiting final floor votes.

Moreover, the Texas Senate bill (TX S No: 24, "An Act relating to cryptocurrency; and, providing for an effective date,") has also advanced and moved to the House for consideration.

The bills in Arizona are being championed by state Senator Wendy Rogers, while in Texas, the legislation is being spearheeded by state Senator Brad Sherman.

Meanwhile, other states, including Kentucky, New Hampshire, Illinois, and Iowa, still have live Bitcoin reserve bills in progress, but they appear to be lagging behind in the legislative process.

In related news, U.S. President Donald Trump has signed an executive order that establishes a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile.

The executive order, signed on March 7, also mandates the creation of a Digital Asset Innovation Task Force to coordinate the government's efforts in the digital asset space.

The administration said the reserve would be funded via assets seized by the federal government instead of direct investments.