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Utah legislature approves blockchain bill without Bitcoin reserve

Utah legislature approves blockchain bill without Bitcoin reserve

GrafaGrafa2025/03/10 12:10
By:Mahathir Bayena

The Utah Legislature has passed a significant blockchain bill, H.B. 230, aimed at providing regulatory clarity for digital assets, but it notably removed a key provision that would have allowed the state treasurer to invest public funds in Bitcoin (CRYPTO:BTC).

The bill received approval from the Senate with a 19-7 vote and subsequently passed the House with a 52-19 vote, including four abstentions.

Originally introduced by Rep. Jordan Teuscher and sponsored in the Senate by Sen. Kirk Cullimore, the legislation still contains important provisions that support blockchain technology.

Among these provisions is a prohibition against state and local governments restricting the acceptance or custody of digital assets.

The bill also protects individuals' rights to operate blockchain nodes and participate in staking, exempting these activities from state money transmitter licensing requirements.

Additionally, it limits local governments from imposing zoning and noise regulations that could unfairly target digital asset mining operations in industrial zones.

This legislative move follows President Trump's recent executive order establishing a Strategic Bitcoin Reserve at the federal level, indicating a growing interest in cryptocurrency adoption across various government levels.

Governor Spencer Cox has yet to publicly announce his intentions regarding signing the bill into law, which is set to take effect on May 7, 2025, if approved.

While Utah's decision to exclude the Bitcoin reserve provision may slow its integration of cryptocurrency into public finances, other states are moving forward with similar initiatives.

For instance, Texas has recently approved a bill allowing the state to invest in Bitcoin as a hedge against inflation, while Arizona is also advancing its own proposal for Bitcoin reserves.

In contrast, South Dakota and Montana have rejected similar bills due to concerns over Bitcoin's volatility and potential risks associated with investing public funds in cryptocurrencies.

Overall, as of now, approximately 18 state proposals are still pending regarding the incorporation of Bitcoin into public financial reserves, reflecting a mixed sentiment toward cryptocurrency at the state level.

At the time of reporting, the Bitcoin (BTC) price was $82,178.09.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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