Utah Moves to Become First U.S. State with Bitcoin Reserve

Utah's House of Representatives has passed a bill that could make the state the first in the U.S. to establish a Bitcoin reserve. The "Strategic Bitcoin Reserve" bill, proposed by Representative Jordan Teuscher, authorizes the state treasurer to allocate up to 5% of certain public funds to purchase "qualifying digital assets," including Bitcoin, high-cap cryptocurrencies, and stablecoins.

The bill, HB230, was approved by the Utah House Economic Development Committee on Jan. 28 with an 8-1 vote. It now moves to the Senate, where it requires a majority approval before being sent to the governor for signing or vetoing.

Utah's initiative comes as other states are also exploring the possibility of investing in cryptocurrencies. In Arizona, the Strategic Bitcoin Reserve Act (SB1025) passed the Senate Finance Committee on Jan. 27 and is pending a House vote. Meanwhile, New Mexico has proposed a similar bill, SB57, which was introduced by Senator Ant Thornton on Feb. 4.

While Utah's bill advances, other states have seen mixed results in their efforts to invest in cryptocurrencies. In North Dakota, lawmakers rejected House Bill 1184, which would have enabled state investment in crypto assets and precious metals, with a vote of 32 for and 57 against.

Fourteen U.S. states have introduced bills giving their local treasuries permission to buy crypto assets, according to the Bitcoin Reserve Monitor. As more states consider similar measures, the implications for the broader market could be profound, driving both institutional investment and retail interest in cryptocurrency.