Utah’s Senate Revenue and Taxation Committee has passed the much-anticipated Bitcoin reserve bill, signaling a significant step towards integrating Bitcoin as a state reserve asset. The HB230 “Blockchain and Digital Innovation Amendments” bill passed on February 20 with a 4-2-1 vote in the subcommittee. This vote moves the bill closer to full Senate approval, where it will undergo a second and third reading before a final vote.
Key Steps Ahead for the Bill
Having already passed through the House, the bill now awaits approval from the full Senate. If it clears the Senate, Republican Governor Spencer Cox would only need to sign the bill into law for Bitcoin to officially become a reserve asset for Utah. The legislation requires that any digital asset must maintain a market capitalization of $500 billion or more over the past year to qualify as a reserve asset. As of now, Bitcoin is the only digital asset meeting this threshold.
The bill passed with unanimous Republican support in the Senate subcommittee, although one Republican and one Democrat voted against it, with one senator absent. This division highlights the political tension surrounding the digital asset’s potential to reshape state finances.
The bill also provides authorization for Utah’s state treasurer to engage in crypto staking, which is not directly applicable to Bitcoin but may involve Ether or other proof-of-stake cryptocurrencies. This opens the door for further diversification of Utah’s digital asset reserves. Additionally, the bill allows up to 5% of digital assets to be allocated across five state accounts, including the General Fund and State Disaster Recovery accounts. The assets must be held with qualified custodians or through an exchange-traded fund.
A Game-Changer for Utah
If passed, the bill is set to go into effect on May 7. Utah is currently leading the charge in crypto regulation among U.S. states, with Satoshi Action Fund CEO Dennis Porter predicting it could be the first state to adopt Bitcoin as a reserve asset. The state’s legislative calendar and political momentum position Utah as a frontrunner in the Bitcoin reserve movement.
Other U.S. states, including Michigan, Wyoming, and Texas, have also introduced similar bills, signaling a growing national interest in Bitcoin as a financial asset. Meanwhile, U.S. Senator Cynthia Lummis continues her push for a federal Bitcoin reserve bill, aiming to bring the concept to a national level.
With Utah at the forefront of this movement, the integration of Bitcoin into state financial systems could soon become a reality, influencing other states and potentially reshaping how digital assets are viewed in the broader economy.
