Utah Makes History by Becoming the First U.S. State to Pass a Bitcoin Bill

Utah has created history by emerging as the first U.S. state to successfully pass a Bitcoin bill, giving a new pattern to cryptocurrency regulations at the state level.

U.S. state Utah has become the first to pass a Bitcoin bill, setting a new pattern for cryptocurrency regulations at the state level. The bill gives the state treasurer jurisdiction over digital assets and restricts government departments, such as universities, from limiting custody or acceptance of Bitcoin and other cryptocurrencies.

HB230, or the “Blockchain and Digital Innovation Amendments” bill, was originally drafted to make Utah the first U.S. state to invest in Bitcoin in its treasury. The initial proposal had the state treasurer investing up to 5% of the money in five state accounts in digital assets with a market capitalization over $500 billion, essentially making Bitcoin the sole qualified asset.

However, concerns for financial stability and safety of public funds prompted lawmakers to remove the reserve clause prior to its passage in a 19-7-3 vote.

The Utah Senate approved the reserve clause for its second reading but removed it before the third and final reading. Legislators offered no apparent motivation for deleting the investment provision, although issues concerning volatility and uncertainty in regulations may have contributed to it.

Despite this setback, the passing of the bill marks a step toward Bitcoin being accepted into mainstream at the state level. Other American states have also been considering similar legislation, and Utah’s move may encourage them to act.

Meanwhile, Bitcoin is also down by 4.23% in the last 24 hours as market sentiment remains bearish with traders focused on broader economic conditions and regulatory updates. And according to CMC at the time of writing BTC is at $78,210.

In Canada, new Prime Minister Mark Carney’s earlier doubts regarding Bitcoin have sparked discussion about potential changes in the nation’s crypto policy. As governments worldwide continue to adjust their stance on digital assets, regulatory clarity will be crucial for shaping the trajectory of Bitcoin adoption.

Although the Utah initiative is a cautious one, the broader movement toward Bitcoin reserves is gaining traction at both the state and federal levels.