Utah has taken a significant step in recognizing digital assets by passing the Blockchain and Digital Innovation Amendments (HB230) bill in the state Senate. However, a major element of the proposal—allowing the state to hold Bitcoin as part of its treasury reserves—was removed before the final vote. This change means that while the bill still advances cryptocurrency rights for Utah residents, it no longer includes provisions for state-backed Bitcoin holdings.
Had the original bill remained intact, Utah would have been the first U.S. state to officially allocate a portion of its funds into Bitcoin. The original proposal allowed the state’s treasurer to invest up to 5% of government reserves into digital assets with a market capitalization exceeding $500 billion, which effectively meant Bitcoin would have been the sole choice.
The bill ultimately passed the Utah Senate on March 7 with a 19-7-3 vote, and a modified version later cleared the House with a 52-19-4 vote. Now, it awaits Governor Spencer Cox’s signature before becoming law.
Why Did Utah Remove the Bitcoin Reserve Provision?
The decision to scrap the Bitcoin reserve proposal was driven by concerns among lawmakers about the risks of early adoption. Some officials felt that including Bitcoin in the state’s treasury was a premature move, given the cryptocurrency market’s volatility.
Senator Kirk A. Cullimore, one of the bill’s key sponsors, acknowledged these concerns, stating:
“All of that has been stripped out of the bill.”
While Utah has backed away from state-backed Bitcoin reserves, the bill still supports crypto-friendly policies. Residents of Utah will gain clear legal protections for self-custody of digital assets, Bitcoin mining, operating blockchain nodes, and staking cryptocurrencies. These rights are crucial for Utah’s growing blockchain industry, ensuring that individuals and businesses can participate in crypto without facing unnecessary restrictions.
Arizona and Texas Lead the Bitcoin Reserve Race
With Utah stepping back, Arizona and Texas have now emerged as frontrunners in the state Bitcoin reserve movement. Both states have introduced legislation to integrate Bitcoin into their treasury reserves, and their bills have already passed Senate committee votes.
Trump’s Executive Order Establishes Federal Bitcoin Reserve
As individual states debate Bitcoin policies, the federal government has made a bold move. On March 7, President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve at the national level.
This new reserve will initially be funded with Bitcoin seized in criminal cases, while the Treasury and Commerce Departments have been tasked with exploring budget-neutral methods to acquire additional BTC. Trump’s pro-crypto stance has fueled growing interest in state-backed Bitcoin reserves, as lawmakers see digital assets playing a larger role in the U.S. financial system.
Universities Are Also Investing in Bitcoin
While governments debate whether to hold Bitcoin, universities are already making moves. The University of Austin recently declared a $5 million Bitcoin fund as part of its $200 million endowment.
Additionally, Emory University disclosed in regulatory filings that it had invested $15 million in Bitcoin through Grayscale’s spot Bitcoin ETF. This growing institutional adoption suggests that Bitcoin is gaining credibility among large financial players, further strengthening its position as a long-term asset.
Conclusion
Although Utah’s Bitcoin reserve plan has been dropped, the state’s decision to formally protect digital asset rights is still a major step forward. With states like Arizona and Texas pushing ahead with Bitcoin reserve proposals, the concept of state-backed BTC holdings is far from dead.
At the same time, President Trump’s executive order and rising institutional interest in Bitcoin suggest that digital assets will continue to shape financial strategies—whether at the state, federal, or academic level. While Utah may have stepped back, the larger trend toward Bitcoin adoption in government and finance appears to be moving full steam ahead.
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