Utah has taken a significant step toward allowing the state treasurer to invest public funds in Bitcoin with the referral of the “Blockchain and Digital Innovation Amendments” bill to the Senate standing committee.
Utah’s Bitcoin Reserve Bill Advances to Senate Standing Committee
The bill, formally known as HB 230, passed the House 8-1 last month and was referred to the Senate Revenue and Taxation Committee on Feb. 13 after its first reading in the Senate. If signed into law, the bill would go into effect on May 7, 2025.
Key Provisions of HB 230
The bill, proposed by Utah Representative Jordan Teuscher on Jan. 21, aims to:
– Authorize the Utah state treasurer to allocate up to 5% of public funds for investment in “qualified digital assets.”
– Define qualifying digital assets as cryptocurrencies or a stablecoin with a 12-month average market value exceeding $500 billion.
Bitcoin (BTC) currently has a market cap of $1.9 trillion, making it the primary eligible asset under the proposed criteria. Ethereum (ETH), with a market cap of $322 billion, would not qualify under the current terms of the bill.
Utah Could Lead the Nation in Bitcoin Reserves
Representative Teuscher highlighted the potential for Utah to become the first US state to successfully pass such a bill, despite at least 11 other states having enacted similar legislation. In a statement on X (formerly Twitter), he wrote:
“While Utah would be the 11th state to introduce a similar bill, we would be the first to pass it.”
Several other states, including Texas, Pennsylvania, Ohio, and Oklahoma, have also recently proposed similar initiatives to create Bitcoin reserves as part of their state investment strategies.
The state-level crackdown on Bitcoin investment strategies has gained momentum, particularly following US President Donald Trump’s pro-crypto stance since taking office in January.
Bitcoin’s role as a government investment vehicle is becoming a growing policy debate among U.S. lawmakers.
*This is not investment advice.
