TL;DR
- Utah passes a bill to integrate Bitcoin as a state reserve asset, with the possibility that BTC will be part of the state’s reserves.
- The HB230 bill has been approved by the Senate subcommittee and is moving toward its final reading; Governor Cox could sign it in May.
- The bill also authorizes the state treasurer to engage in cryptocurrency staking, which opens the door for the future inclusion of other cryptocurrencies like Ethereum.
The state of Utah has taken an important step toward integrating Bitcoin into its economic system. A bill has been passed that would allow BTC to become a state reserve asset.
The bill, titled HB230 “Blockchain and Digital Innovation Amendments,” passed the Senate Revenue and Taxation subcommittee with a favorable vote of 4-2-1 on February 20. It is now moving on to a new reading in the Senate before a final vote.
This bill seeks to formalize the state’s investment in Bitcoin, aligning BTC with other traditional assets used as reserves. For a digital asset to be considered a reserve, it must have maintained a market capitalization greater than $500 billion over the last calendar year. Bitcoin meets this criterion, being the only digital asset that currently has the capacity to reach this threshold.
Bitcoin on the Verge of Entering U.S. State Economies
Additionally, the bill authorizes the state treasurer to engage in cryptocurrency staking, a practice primarily associated with assets like Ethereum, which employs a proof-of-stake system. This measure suggests that, in the future, other cryptocurrencies could be included in Utah’s reserve portfolio. The treasurer would be able to invest up to 5% of digital assets in various state accounts, such as the general fund budget, the income tax fund, and the disaster recovery accounts.
The next step in the legislative process is the reading and voting of the bill in the Senate, and, if approved, Governor Spencer Cox will sign the bill into law, making Bitcoin an official reserve asset. If passed, the bill would take effect on May 7.
This positions Utah as one of the most advanced states in terms of cryptocurrency regulation, an area where other U.S. states like Arizona, Illinois, Texas, and Montana have also introduced similar bills. Furthermore, at the federal level, Senator Cynthia Lummis is still working on an initiative to establish a national Bitcoin reserve.
