Utah continues to make strides in its quest to create a strategic Bitcoin (BTC) reserve, as the state’s Blockchain and Digital Innovation Amendments bill – also known as H.B. 230 – cleared its first reading in the Senate yesterday, and has now moved to the Senate Revenue and Taxation Committee for further consideration.
Utah Bitcoin Reserve Bill Passes First Reading In Senate
In a major development that could strengthen Bitcoin’s position as a mainstream store of value, Utah’s H.B. 230 bill has successfully cleared its first reading in the state Senate. According to the official bill tracker, the proposal has now advanced to the Senate Revenue and Taxation Committee, where it will undergo further review before potentially moving to the next stage of the legislative process.
To recall, Utah Representative Jordan Teuscher introduced H.B. 230 on January 21. The bill passed the House in the same month with an 8-1 vote before proceeding to the Senate for its first reading on February 7.
If enacted, the bill would authorize the state treasurer to allocate up to 5% of public funds for investment in “qualifying digital assets.” According to the bill’s criteria, these assets must have maintained a market capitalization of more than $500 billion over the past 12 months and must not be a stablecoin.
Under these strict requirements, Bitcoin is currently the only asset that qualifies. The leading cryptocurrency commands a total market cap of over $1.9 trillion, whereas Ethereum (ETH), the second-largest digital asset by market capitalization, stands at approximately $327 billion, falling short of the proposed $500 billion threshold.
If the bill is enacted, it is expected to go into effect on May 7. Commenting on the legislation’s development, Teuscher wrote in a recent X post:
Thrilled to join with @Dennis_Porter_ to announce HB230 which will allow the state to invest in digital assets. While Utah is the 11th state to introduce similar legislation, we will be the first to pass it. Utah continues to lead the nation in blockchain and digital innovation!
Various States Working Toward BTC Adoption
Teuscher’s statement reflects the broader movement among several US states to incorporate Bitcoin into their financial strategies. Utah is not alone in considering Bitcoin reserves, as more than 25 different states have introduced similar legislative measures aimed at creating a strategic Bitcoin reserve.
In May 2024, New Hampshire State Representative Keith Ammon proposed diversifying the state’s financial reserves by investing in Bitcoin exchange-traded funds (ETFs). Later in October, Florida’s Chief Financial Officer, Jimmy Patronis, urged the state’s pension fund managers to explore Bitcoin investments as part of a broader strategy to strengthen financial resilience.
Similar bills have been introduced in other states, including Alabama, Massachusetts, South Dakota, Ohio, and Oklahoma. At press time, BTC trades at $96,075, up 0.6% in the past 24 hours.
Featured Image from Unsplash.com, Charts from Bitcoinlaws and TradingView.com
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