Utah Senate passes a Bitcoin bill, HB320, integrating crypto into the state’s legislature. Prioritizing residents’ rights, the bill enables Bitcoin mining, staking, and holding digital assets with custodial protection. However, it abandons plans for a state-held Bitcoin reserve.
Utah Senate, one of the frontrunners to establish Bitcoin reserve according to some experts, has passed the Bitcoin bill HB320 on March 7 without a condition for Bitcoin reserve and is now waiting for the signature of Governor Spencer Cox to become law.
The bill titled the ‘Blockchain and Digital Innovation Amendments, removes the provision of Bitcoin reserve before the final approval, which would have established Utah as the first US state to implement a Bitcoin reserve, creating a concern among the crypto community.
The initial recommendation included a provision allowing the state to invest a maximum of 5% of public funds into crypto, especially focusing on Bitcoin, conditioned to those with a market cap exceeding $500 million in the previous year, which is now removed.
The soon-to-be-come-law bill allows state residents to gain self-custody of their digital assets, the right to mine Bitcoins operate blockchain nodes, and participate in staking without government interference.
Though the finalized bill drops the Bitcoin reserve proposition the included provisions highlight the state’s long-term vision to engage residents with blockchain and crypto technology. The bill was approved with 19-7-3 votes.
With more than 30 states proposing similar legislation, Utah’s move paves the way for speculations. States like Arizona and Texas have proposed similar Bitcoin reserve bills and are waiting for approval while other states like Montana, North Dakota, Wyoming, South Dakota, and Pennsylvania have the proposal.
Summary Of HB320 Utah Senate Bill
Though the HB320 bill drops plans for Bitcoin reserve before the final approval, it includes strategic proposals that enhance the resident’s interaction with blockchain and crypto. The clauses included in the bill were,
- Authorizes the state treasurer to invest in certain public funds in certain digital assets.
- Establishes requirements for the custody and management of digital assets.
- Creates regulatory requirements for the stablecoin investments.
- Authorizes the state treasures to participate in staking and lending of digital assets, provided conditions are followed.
Utah’s Bitcoin Bill Shatters Hope
According to many industry experts, Utah was poised to become the first state to establish a Bitcoin reserve. However, the finalized bill that excluded the proposal for a Bitcoin reserve, scattered many hopes and predictions.
A total of 30 Bitcoin reserve bills have been introduced across various states, of which 25 are under consideration. These states include Lowa, Kentucky, Illinois, Maryland, New Hampshire, Massachusetts, New Mexico, North Dakota, Ohio, and Oklahoma.
Trump signed the executive order for his long-boasted Bitcoin reserve on March 7, a day before the White House Crypto Summit. The reserve will include Bitcoins acquired from criminal and civil forfeitures and will hold it as a store of value, which can’t be sold. According to the order, instead of buying additional Bitcoins, the treasury will find new budget-neutral ways to expand Bitcoin holdings.
