Utah’s Senate has passed a groundbreaking Bitcoin bill, but not without a major setback—the removal of a provision that would have made Utah the first U.S. state to establish a Bitcoin reserve.

The HB230 “Blockchain and Digital Innovation Amendments” bill, approved with a 19-7-3 vote on March 7, now only ensures basic crypto protections for Utah citizens, the right to mine Bitcoin, run nodes, and participate in staking. However, the reserve clause—originally allowing the state treasurer to invest up to 5% of state funds in Bitcoin—was removed in the bill’s final reading. The Utah House later approved the amendment in a 52-19-4 vote.

“There was a lot of concern with those provisions and the early adoption of these types of policies,” said Senator Kirk A. Cullimore, a key sponsor of the bill, confirming the removal of the reserve clause.

Before the amendment, Utah was on track to be the first U.S. state to officially hold Bitcoin in its treasury, a move that had drawn attention from crypto advocates. Now, the focus shifts to Arizona and Texas, where Bitcoin reserve bills are still active and awaiting final votes.

Out of 31 Bitcoin reserve proposals across various U.S. states, 25 remain under consideration, including bills in Illinois, Ohio, and New Hampshire. Meanwhile, attempts in Pennsylvania, Montana, and Kentucky have failed.

Despite Utah’s reversal, momentum for state-level Bitcoin adoption continues. On the same day, President Trump signed an executive order establishing a federal Strategic Bitcoin Reserve, marking a significant step toward national Bitcoin holdings.