Utah’s Bitcoin Bill Passes Senate, But State Reserve Proposal Gets Dropped

Utah’s ambitious Bitcoin bill has cleared the state Senate but without its most ground-breaking provision—the establishment of a state-backed Bitcoin reserve.

The HB230 “Blockchain and Digital Innovation Amendments” bill, which initially proposed allowing the state to hold Bitcoin as part of its treasury, has now been significantly altered.

Instead, the measure now focuses on providing Utah residents with fundamental rights related to digital assets. This includes protections for self-custody, the ability to mine Bitcoin, operate nodes, and participate in staking activities.

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Utah Senate Approves Bitcoin Bill in 19-7-3 Vote, Awaits Governor’s Signature

On March 7, the bill passed the Senate with a 19-7-3 vote and is now awaiting Governor Spencer Cox’s signature to become law. However, the proposed Bitcoin reserve clause was removed during the bill’s final reading.

The clause would have authorized Utah’s treasurer to allocate up to 5% of state funds into digital assets with a market capitalization exceeding $500 billion—effectively making Bitcoin the only eligible asset. The Utah House later approved the amended version in a 52-19-4 vote.

Senator Kirk A. Cullimore, one of the bill’s sponsors, acknowledged concerns over the early adoption of such policies. He said, “All of that has been stripped out of the bill.”

Had the reserve provision remained intact, Utah would have become the first U.S. state to officially adopt Bitcoin as part of its financial strategy. Satoshi Action Fund CEO Dennis Porter had previously predicted that Utah was on track to set this precedent.

With Utah stepping back, attention now turns to Arizona and Texas, where similar Bitcoin reserve bills are progressing. According to Bitcoin Laws data, these measures have successfully passed Senate committee votes and are now awaiting final floor decisions.

State Bitcoin Reserve Race Update:

It’s now a two-horse race between Texas and Arizona, after Utah drops out on a technicality:

The UT bill is progressing, but stripped of ‘Bitcoin Reserve’ provisions. https://t.co/BrFzdQQJ6q pic.twitter.com/5csvFBK1eL

— Bitcoin Laws (@Bitcoin_Laws) March 8, 2025

Among the 31 Bitcoin reserve bills introduced across various states, 25 remain active, including proposals from Illinois, Iowa, Kentucky, Maryland, Massachusetts, New Hampshire, New Mexico, North Dakota, Ohio, and Oklahoma. Meanwhile, efforts in Pennsylvania, Montana, Kentucky, and North Dakota have failed.

The development coincides with a major federal move on Bitcoin. On March 7, President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve, which will be seeded with Bitcoin seized in criminal cases.

The Treasury and Commerce departments have been directed to explore budget-neutral strategies for acquiring additional Bitcoin.

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Trump’s Pro-Crypto Stance Sparks Interest in State-Backed Bitcoin Reserves

The growing interest in state-backed Bitcoin reserves has been fueled by President Donald Trump’s pro-crypto stance, which has encouraged lawmakers to explore digital asset strategies.

Notably, Bitcoin has also gained traction among university endowments. For one, the University of Austin is launching a $5 million Bitcoin fund as part of its $200 million endowment. 

Notably, the precedent is set by Emory University. In a regulatory filing last October, it was disclosed that over $15 million in Bitcoin was invested through Grayscale’s spot Bitcoin exchange-traded fund (ETF).

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