Utah Moves Closer to Bitcoin Reserve as Bill Passes Senate Committee

Utah's Bitcoin reserve bill has taken a significant step forward, passing through the Senate Revenue and Taxation Committee in a 4-2-1 vote on Feb. 20. The HB230 "Blockchain and Digital Innovation Amendments" bill, which aims to make Bitcoin a state reserve asset, is now set for a second and third reading before a final Senate vote.

The bill, which has already been approved by the House, requires only Governor Spencer Cox's signature to become law. All four senators who voted in favor of the bill were Republicans, while one Republican and one Democrat voted against it. One senator was marked absent.

To qualify as a reserve asset, a digital asset must have averaged a market capitalization of $500 billion or more over the last calendar year. Currently, Bitcoin is the only digital asset that meets this requirement. The bill also authorizes the state treasurer to engage in crypto staking, suggesting that proof-of-stake cryptocurrencies like Ether could be included in the future.

The state treasurer may invest up to 5% of digital assets in each of the five state accounts listed, including the General Fund Budget, Income Tax Fund Budget, and State Disaster Recovery accounts. The funds must be held with a qualified custodian or through an exchange-traded fund. If passed, the bill would take effect on May 7.

Utah has made significant regulatory progress in the crypto space, with Satoshi Action Fund CEO Dennis Porter tipping the state to be the first in the U.S. to adopt a Bitcoin reserve. Other states, including Arizona, Illinois, Kentucky, and Montana, have also introduced bills for a Bitcoin reserve. Meanwhile, US Senator Cynthia Lummis continues her efforts to pass a Bitcoin reserve bill at the federal level.