Utah State Senate Strips Bitcoin Reserve Provision from Crypto Bill

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

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. It also sets out to recognize and respect the emerging industry’s core practices.

The original draft of the bill, passed by the House of Representatives in March, included an article allowing Utah to allocate up to 5% of public funds toward digital assets with a market capitalization exceeding $500 billion—effectively targeting Bitcoin.

However, lawmakers removed the Bitcoin investment clause and made several adjustments to the bill before finally approving it on Monday, May 7. This move alters Utah’s trajectory in the race to set up a state-owned Bitcoin reserve.

Despite this adjustment, HB230 is largely 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 broader trend among US states exploring crypto as a financial asset. Several states, including Mississippi and Wyoming, passed legislation this year allowing them to invest in Bitcoin.

At the federal level, President Donald Trump recently 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, and 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. The administration will prefer to use budget-neutral methods for acquiring Bitcoin, and the startup will grow the digital asset stockpile through enforcement actions.