Legislation Grants Residents Custody Protections, Mining Rights, and Node Operation Freedoms While Omitting Controversial BTC Reserve Provision
In a pivotal move for digital currency regulation, the Utah Senate passed Senate Bill 213, a sweeping legislative framework designed to solidify residents’ rights to mine, stake, and custody bitcoin.
However, the bill notably excluded a widely anticipated clause that would have authorized the state treasurer to allocate treasury funds to bitcoin, dampening hopes for Utah to become the first U.S. state to establish a formal BTC reserve. The bill from the Utah Senate now advances to Governor Spencer Gox for final approval. 
Key Provisions of the Utah Senate Bitcoin Bill
The legislation, hailed as a win for individual bitcoin freedoms, enshrines critical protections and rights for Utah residents and businesses:
- Self-Custody Safeguards: Legal recognition of individuals’ rights to hold bitcoin in self-custodied wallets without third-party intermediation.
- Mining Protections: Explicit authorization to mine bitcoin, including noise and energy-use exemptions to prevent local restrictions.
- Node Operation Rights: Ensures individuals and businesses can run bitcoin nodes without licensing hurdles.
- Staking Clarity: Establishes legal guidelines for staking digital assets, resolving prior regulatory ambiguities.
The bill also prohibits discriminatory taxation of digital currency transactions and mandates state agencies to accept digital currency payments for fines and fees where feasible.
The Missing Piece: No State Bitcoin Reserve
Despite bipartisan support for the broader bill, Utah Senate lawmakers removed a contentious provision that would have empowered the state treasurer to invest up to 1% of Utah’s 34B treasury into bitcoin.
Advocates argued such a reserve would hedge against dollar devaluation and position Utah as a pioneer in fiscal innovation, mirroring corporate strategies like MicroStrategy’s.
Critics, however, cited concerns over bitcoin’s volatility and political optics. State Senator Rebecca Lockhart, a bill co-sponsor, explained:
“While we champion individual freedoms, committing taxpayer funds to Bitcoin requires broader consensus. This bill lays the groundwork for future discussions.”
The omission disappointed advocates who viewed Utah—home to a thriving tech sector and libertarian-leaning policies—as the likeliest candidate to follow El Salvador’s lead in adopting bitcoin at the state level.
National Context: Utah Senate Joins Regulatory Vanguard
The Utah Senate bill aligns with a growing wave of state-level digital asset legislation:
- Wyoming: Recognized crypto as legal property in 2022 and established a regulatory sandbox.
- Texas: Incentivized bitcoin mining through tax breaks and grid flexibility.
- Florida: Banned CBDC use, citing privacy concerns.
However, Utah’s focus on individual rights over institutional investment distinguishes it as a model for balancing innovation with caution.
Industry Reactions: Praise and Pragmatism
Digital Asset Advocacy Groups:
- The bitcoin Policy Institute praised the bill’s custody and mining protections as “a blueprint for financial sovereignty.”
- Satoshi Action Fund highlighted Utah’s node operation rights as critical for decentralizing Bitcoin’s network.
Critics:
- The Utah Taxpayers Association argued the bill’s energy exemptions could strain local power grids.
- Progressive groups criticized the lack of environmental guardrails for mining operations.
Next Steps: Governor’s Desk and Future Prospects
Governor Spencer Gox, a moderate Republican with a pro-tech record, is expected to sign the bill by Utah Senate into law by April 2025. If enacted, Utah will join eight states with comprehensive digital asset frameworks.
Advocates vow to revisit the BTC reserve proposal in 2026. “This is a marathon, not a sprint,” said Derek Harris, founder of the Utah Blockchain Coalition. “Today, we secured foundational rights. Tomorrow, we’ll push for institutional adoption.”
Utah has emerged as a hub for blockchain innovation, leveraging its low energy costs, tech talent pool, and business-friendly policies. Key milestones include:
- 2023: Salt Lake City hosted the first U.S. bitcoin mining summit powered by renewable geothermal energy.
- 2024: University of Utah launched a blockchain research lab with $10M in private funding.
- 2025: Over 200 local businesses now accept bitcoin, per the Utah Chamber of Commerce.
