Utah Senate Passes Bitcoin Bill Without Reserve Clause Bitcoin Drops

Utah’s Senate has passed a Bitcoin bill, but a key provision that would have made it the first US state with its own Bitcoin reserve has been scrapped. The HB230 “Blockchain and Digital Innovation Amendments” bill now focuses on providing Utah citizens with basic custody protections, the right to mine Bitcoin, run a node, and participate in staking, among other things. The bill passed with a 19-7-3 vote and is now headed to Utah Governor Spencer Cox’s desk to be signed into law.

The reserve clause, which would have authorized Utah’s treasurer to invest up to 5% of digital assets with a market cap above $500 billion over the last calendar year in five state accounts, was initially included but was later removed. This clause passed the second reading but was scrapped in the third and final reading. Utah’s House then concurred with the amendment in a 52-19-4 vote. Senator Kirk A. Cullimore, one of the bill’s sponsors, acknowledged the concerns surrounding the early adoption of such policies, stating that all related provisions had been stripped out of the bill.

Prior to the removal of the reserve clause, Utah was poised to become the first US state to adopt a Bitcoin reserve. However, with the clause’s removal, the focus has shifted to other states, such as Arizona and Texas, which have Bitcoin reserve bills awaiting final votes in their respective Senate committees. The race to establish a Bitcoin reserve at the state level continues, with 25 out of 31 introduced bills remaining live, including those from Illinois, Iowa, Kentucky, Maryland, Massachusetts, New Hampshire, New Mexico, North Dakota, Ohio, and Oklahoma.

The passage of the bill in Utah, despite the removal of the reserve clause, is seen as a positive step towards greater acceptance of Bitcoin. The legislation provides a framework for businesses and individuals to use Bitcoin for transactions, potentially boosting the state's economy and attracting more cryptocurrency enthusiasts. However, the lack of a clear regulatory framework for tax payments remains a hurdle that needs to be addressed in the future.

The debate surrounding the Bitcoin bill in Utah reflects the broader conversation about the role of cryptocurrencies in modern society. While proponents argue that Bitcoin offers a decentralized and secure alternative to traditional currencies, critics point to its volatility and potential for misuse. As more states and countries explore the use of cryptoc