Utah Blockchain Legislation Passes, Crypto Investment Provision Removed

Utah Blockchain Legislation: Key Provisions Explained

Utah Blockchain– Utah lawmakers have approved a significant piece of legislation aimed at providing clearer regulations for blockchain and digital asset activities, though it removed a crucial provision that would have allowed the state to directly invest public funds in cryptocurrency.

The bill, H.B. 230—Blockchain and Digital Innovation Amendments, passed Utah’s Senate with a 19-7 vote, following amendments that stripped out the provision allowing the state treasurer to allocate public funds into a Bitcoin reserve. The Utah House later agreed with these changes, passing the revised version 52-19, with four abstentions.

Introduced by Rep. Jordan Teuscher (R-Utah) and sponsored by Sen. Kirk Cullimore (R-Utah), the amended bill still contains blockchain-friendly provisions. These include protections for individuals running blockchain nodes, engaging in staking, and exemptions from state money transmitter licensing requirements. Additionally, the bill prevents state and local governments from restricting the acceptance or custody of digital assets.

Local Governments and Digital Asset Mining

Another important feature of the legislation is its limitation on local governments imposing unfair zoning and noise regulations on digital asset mining businesses in industrial zones. This move aims to foster a more favorable environment for crypto-related businesses to operate.

The bill comes in the wake of President Trump’s March 6 executive order establishing a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile at the federal level, signaling broader governmental interest in crypto adoption. Governor Spencer Cox has not yet indicated whether he plans to sign the bill into law. If approved, the legislation will officially take effect on May 7, 2025.

With these changes, Utah Blockchain is taking a significant step toward becoming a more crypto-friendly state, though the removal of the Bitcoin reserve provision leaves the future of public crypto investments uncertain.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.