Utah Passes Blockchain Bill, Scraps Bitcoin Reserve Plan

Legislation Moves Forward Without Bitcoin Investment

Utah lawmakers passed a bill to support blockchain technology but removed a key section. Originally, the bill allowed the state to invest public funds in Bitcoin.

The Senate approved the revised bill with a 19-7 vote. Later, the House accepted the changes, passing it 52-19. Four lawmakers chose not to vote.

What’s in the Bill?

The law still supports digital assets in several ways. It prevents local governments from banning crypto payments or blockchain activities.

People can run blockchain nodes and participate in staking* without extra regulations. Crypto mining businesses in industrial zones also get protection from unfair rules.

The bill does not require a money transmitter license for these activities. That makes it easier for blockchain businesses to operate in Utah.

(*Staking: Locking up cryptocurrency to help secure a blockchain network in exchange for rewards.)

Utah’s Decision Comes Amid a National Crypto Shift

This bill comes after President Trump’s executive order on March 6. The order created a Strategic Bitcoin Reserve at the federal level. Some states are also considering similar Bitcoin reserves.

Texas and Arizona lead the charge. Texas lawmakers passed a bill to invest in Bitcoin, calling it a hedge against inflation. Arizona is moving forward with a proposal to put 10% of state funds into digital assets.

Not Every State Is on Board

While some states embrace Bitcoin, others are rejecting it. Montana, South Dakota, and Wyoming have all voted against similar Bitcoin reserve bills.

Concerns over Bitcoin’s price swings are a major reason. Opponents worry about risking public money on an unpredictable asset.

Still, at least 18 states are reviewing Bitcoin reserve proposals. These include Kansas, Iowa, Florida, and Michigan.

With Utah stepping back, the question remains: will more states follow, or will Bitcoin become a key part of public finances?