Utah’s legislation to officially designate Bitcoin as a state reserve asset has made significant progress. The Bitcoin reserve bill, known as HB230 “Blockchain and Digital Innovation Amendments,” was passed by the Senate Revenue and Taxation Committee and is now one step closer to being signed into law.
Bitcoin Reserve Bill Clears Key Hurdles
On February 20, the bill was approved by the Senate Revenue and Taxation Subcommittee with a 4-2-1 vote, advancing to a second and third reading before the final Senate vote. Having already passed through the Utah House, the bill now awaits approval from the state Senate. If it clears this final legislative hurdle, it will be presented to Utah’s Republican Governor Spencer Cox for signing into law, which would officially make Bitcoin (BTC) a reserve asset for the state.
Key Provisions of Utah’s Bitcoin Reserve Bill
The bill outlines that in order for a digital asset to be designated as a state reserve, it must have maintained an average market capitalization of at least $500 billion over the previous calendar year. Currently, Bitcoin is the only digital asset that meets this threshold. Ethereum (ETH) briefly surpassed this market cap in 2021 but has not held above the $500 billion mark consistently.
Additionally, the bill allows Utah’s state treasurer to engage in crypto staking, a process that is not applicable to Bitcoin directly but could involve other proof-of-stake cryptocurrencies, such as Ethereum. This provision paves the way for future inclusion of other digital assets in Utah’s reserve strategy.
The bill also sets forth that the state treasurer may allocate up to 5% of digital assets into various state accounts, including the General Fund Budget, Income Tax Fund Budget, and the State Disaster Recovery accounts. The digital assets must be held by a qualified custodian or through an exchange-traded fund (ETF).
Next Steps and Legislative Timeline
If passed, the bill is set to take effect on May 7. Utah is rapidly becoming a leader in cryptocurrency regulation, with the state’s shorter legislative calendar and political momentum giving it a competitive edge in the race to adopt a Bitcoin reserve. Satoshi Action Fund CEO Dennis Porter has speculated that Utah could become the first state in the U.S. to formally adopt Bitcoin as a reserve asset.
Growing National Interest in Bitcoin Reserve Bills
Utah is not the only state considering the adoption of Bitcoin as a reserve asset. Other U.S. states, including Arizona, Illinois, Kentucky, Maryland, Montana, New Hampshire, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, South Dakota, and Texas, have introduced similar Bitcoin reserve bills.
At the federal level, U.S. Senator Cynthia Lummis is actively working on advancing a Bitcoin reserve bill, further signaling the growing interest in cryptocurrency adoption and regulation across the country.
Conclusion: Utah’s Leadership in Crypto Regulation
Utah’s Bitcoin reserve bill is a landmark piece of legislation that could pave the way for broader cryptocurrency adoption within the U.S. By advancing Bitcoin as a state reserve asset, Utah is positioning itself as a leader in digital asset regulation. As the bill progresses through the Senate, all eyes will be on the state to see if it can become the first to embrace Bitcoin as a reserve asset, setting a precedent for others to follow.
