Utah’s state Senate has approved HB230, a bill focused on blockchain and digital assets but without its original provision to establish a state Bitcoin reserve. The measure now awaits Governor Spencer Cox’s approval.

Initially, the bill aimed to position Utah as the first US state with a Bitcoin reserve by allowing the state treasurer to invest up to 5% of digital assets with a market cap exceeding $500 billion. 

However, this clause was removed in the final stages of review. The bill, now concentrating on digital asset protections and rights, was passed in a 19-7-3 vote on March 7. The Utah House later agreed to the amendment with a 52-19-4 vote.

Senator Kirk A. Cullimore, one of the bill’s sponsors, cited concerns over the potential risks of state-level Bitcoin investments, leading to the decision to strip the reserve provision. Despite this change, HB230 still introduces notable regulatory advancements for blockchain activities in Utah.

The bill defines digital assets and prohibits state or local government entities from restricting their acceptance or custody. It also guarantees the rights to operate blockchain nodes, transfer digital assets, participate in staking, and develop blockchain-based software. 

Additionally, it removes certain money transmitter licensing requirements for blockchain-related businesses and limits restrictions on digital asset mining operations in industrial zones.

The bill advanced through the Senate under a special procedural rule, gaining support from 19 senators while seven opposed it, and three were absent or abstained. While Utah will not establish a Bitcoin reserve, the bill reflects a growing effort among states to clarify digital asset regulations.

Meanwhile, on the federal level, President Donald Trump signed an executive order on March 7 to create a Strategic Bitcoin Reserve. This reserve will be funded through Bitcoin obtained from criminal forfeitures, with further acquisitions guided by budget-neutral strategies devised by the Treasury and Commerce departments.

Utah’s legislative move is part of a broader trend in cryptocurrency regulation as states explore policies to integrate blockchain technology while assessing potential risks and benefits.