Story Highlights
- Utah passes a Bitcoin bill but exempts a state investment requirement.
- The bill ensures people’ digital asset custody rights.
- Bitcoin trading at $78K despite market volatility.
Utah has created history by emerging as the first U.S. state to successfully pass a Bitcoin bill, giving a new pattern to cryptocurrency regulations at the state level. The bill gives jurisdiction over digital assets to the state treasurer and restricts government departments from limiting custody or acceptance of Bitcoin and other cryptocurrencies.
HB230, or the “Blockchain and Digital Innovation Amendments” bill, was originally drafted to make Utah the first U.S. state to invest in Bitcoin in its treasury. The initial proposal had the state treasurer investing up to 5% of the money in five state accounts in digital assets with a market capitalization over $500 billion, essentially making Bitcoin the sole qualified asset. Yet, financial stability and safety of public funds concerns prompted lawmakers to remove the reserve clause prior to its passage in a 19-7-3 vote.
Utah Becomes First U.S. State to Pass Bitcoin Bill
Reports state that the Utah Senate approved the reserve clause for its second reading but removed it before the third and final reading. Legislators offered no apparent motivation for deleting the investment provision, although issues concerning volatility and uncertainty in regulations may have contributed to it.
With that aside, the passing of the bill nevertheless marks a stride toward Bitcoin being accepted into mainstream at the state level. Other American states have also been considering the same legislation, and Utah’s move may open the door for them to act in the not-too-distant future.
Meanwhile, Bitcoin is also hovering around $82,000, lower by 4.23% within the last 24 hours. Market sentiment is still bearish as traders weigh broader economic conditions and regulatory updates. And according to CMC at the time of writing BTC is at $78,210.
In Canada, the new Prime Minister Mark Carney’s earlier doubts regarding Bitcoin have set speculation rolling about possible changes in the nation’s crypto policy. While governments around the world keep improving their approach towards digital assets, regulatory clarity is a major driver for influencing the destiny of Bitcoin adoption.
While the Utah move is a conservative one, the overall momentum behind Bitcoin reserves keeps gaining speed at both state and federal levels.
