"Utah House Passes Blockchain Bill: 5% of Public Funds to Digital Assets"

The Utah House of Representatives has passed HB 230, also known as the Blockchain and Digital Innovation Amendments, marking a significant step in the state’s approach to digital asset investment. The bill allows the state of Utah to allocate up to 5% of public funds to qualifying digital assets, passing with a narrow 38-34 vote and three abstentions.

State Representative Jordan Teuscher presented HB 230 on January 21, which quickly passed the House Economic Development and Workforce Services Committee with an 8-1-1 vote before gaining approval in the House. The bill now moves to the Senate for further consideration.

Dennis Porter, CEO of Satoshi Action Fund, shared on X (formerly Twitter) that the “Strategic Bitcoin Reserve” bill had officially passed the House in the state of Utah. Porter had previously predicted Utah’s potential to establish the first Bitcoin (BTC) reserve, citing the state’s short 45-day legislative calendar and the role of its digital asset task force in pushing related initiatives forward.

Arizona is the only other state with a similar bill nearing approval. The Strategic Bitcoin Reserve Act (SB1025) has passed the Senate Finance Committee and is now awaiting a vote in the House.

Despite the enthusiasm, some skeptics argue that HB 230 does not explicitly favor Bitcoin. Justin Bechler, an X user, criticized the bill’s language, stating that it does not reference Bitcoin once. Bechler argued that the bill is structured to favor stablecoins, as it includes any digital asset with a market capitalization exceeding $500 billion. While this threshold seemingly includes Bitcoin, the legislation separately categorizes stablecoins. Bechler further noted that the bill mandates asset custody through banks, trust companies, or exchange-traded products, aligning with centralized management rather than Bitcoin’s decentralized ethos.

Bechler highlighted a money transmitter exemption within the bill, which facilitates digital asset exchanges but does not aid Bitcoin adoption in Utah, according to him. He further explained that the legislation specificially prohibits the state from owning Bitcoin.

Porter pushed back against the criticism, asserting that only Bitcoin qualifies under the bill. He clarified that the bill was purposely structured to maximize its likelihood of passing into law. The bill exempts individuals from needing a money transmitter license when running a