TLDR
- The Utah Senate has successfully passed a blockchain-focused bill, however, it stripped out a significant section meant to pave the way for a state-level Bitcoin reserve.
- Citizens retain their rights to engage in cryptocurrency activities such as Bitcoin mining, node operation, and staking under the new bill.
- Simultaneously, an executive order by President Trump has led to the creation of a federal Strategic Bitcoin Reserve.
- Texas and Arizona have taken the lead in establishing Bitcoin reserves, with legislation making significant progress.
- Among similar pieces of legislation, 25 remain under consideration while six states have outright rejected the idea of state Bitcoin reserves.
Despite Utah's decision to abandon plans for a Bitcoin reserve, the newly passed blockchain bill ensures ongoing protection for various crypto-related activities, in stark contrast to federal and other state efforts to invest in Bitcoin.
House Bill 230, titled 'Blockchain and Digital Innovation Amendments', saw overwhelming support and was passed with 19 in favor, 7 against, and 3 abstentions. Utah’s Senate The House concurred with the amendments made by the Senate, passing the bill with 52 votes in favor and four members deciding to abstain.
Initially, the proposal allowed for up to 5% of Utah's funds to be invested in digital assets with a market cap exceeding $500 billion, criteria that only Bitcoin fits at present.
Senator Kirk A. Cullimore expressed reservations towards embracing such pioneering policies during the state's legislative session, leading to the removal of the reserve provision.
Even after the revisions, Utah's citizens benefit from legal securities that prevent limitations on the handling or acceptance of digital currencies by state and local entities.
Furthermore, the bill endorses individuals’ rights to maintain blockchain networks and engage in staking without needing state money transmitter licenses.
Local authorities face constraints when it comes to imposing unjust regulations on cryptocurrency mining, safeguarding miners from being unfairly targeted in terms of zoning and noise ordinances.
The finalized bill now stands by for Governor Spencer Cox to sign it into law, with an enactment date set for May 7, 2025, pending his consent.
Previously expected to set a precedent by creating a Bitcoin reserve, Utah now takes a backseat to Texas and Arizona, which are significantly ahead in the legislative race to establish such funds.
The Bitcoin Reserve Race Heats Up
With a decisive 25-5 vote, the Texas legislature moved a step closer towards securing a Bitcoin reserve, largely due to Senator Charles Schwertner's advocacy for Bitcoin's role in future economic stability.
Schwertner emphasized the evolution of financial storage, comparing digital currency holdings to outdated physical cash reserves.
Arizona, too, is actively pursuing Bitcoin investments with its SB 1025 bill, which has passed another key stage in its Senate proceedings.
With SB 1025, Arizona proposes a greater commitment to Bitcoin, suggesting the allocation of up to 10% of state funds in digital assets—a more aggressive approach compared to Utah.
Oklahoma joins the Bitcoin reserve trend with its Strategic Bitcoin Reserve Act, HB 1203, backed by a substantial 12-2 vote in favor.
Despite the momentum, not every state aligns with Bitcoin reserve plans, citing unease over Bitcoin's unpredictable value as seen with legislation rejected in Montana, South Dakota, and others.
Accounting for all state-level Bitcoin reserve initiatives, 25 out of 31 original proposals are still under deliberation, including those in places like Iowa, and Ohio.
State legislative movements echo President Trump's executive order from March 7, which mandates the establishment of a national Bitcoin reserve.
Initially, Bitcoin for the federal reserve will originate from assets seized in legal proceedings, with future expansion overseen by the Treasury and Commerce departments.
According to Bitcoin Laws data, As many as 18 state bills are still awaiting conclusion. States such as Kansas, Missouri, and Michigan are among those assessing Bitcoin for their fiscal programs.
Despite the absence of the reserve provision, Utah's newly passed legislature marks a positive move towards embracing cryptocurrency by safeguarding core digital activities.
With more states contemplating the establishment of Bitcoin reserves, regulatory frameworks are in constant flux, keeping Bitcoin enthusiasts eager and attentive.
