Utah continues to make progress in his quest to create a strategic bitcoin (BTC) reserve, such as the State Blockchain and Digital Innovation Change proposal – also known as HB 230 – Cleaned The first treatment in the Senate yesterday and has now moved to Senate’s revenue and tax committee for further consideration.
Utah Bitcoin Reserve Bill passes the first treatment in the Senate
In a major development that can strengthen Bitcoin’s position as a mainstream store with value, Utah’s HB 230 bill has successfully cleared its first treatment in the state’s Senate. According to the official Bill Tracker, the proposal has now advanced to the Senate’s revenue and tax committee, where it will undergo further review before it potentially goes to the next step in the legislative process.
To remember, the Utah representative introduced Jordan Teuscher HB 230 on January 21. The bill passed the chamber the same month with an 8-1 vote before continuing to the Senate for his first read on February 7.
If it is assumed, the bill would authorize the Treasury to allocate up to 5% of public funds for investments in “qualified digital assets.” According to the bill’s criteria, these assets must have maintained a market capitalization of more than $ 500 billion over the past 12 months and must not be a StableCoin.
According to these strict requirements, Bitcoin is currently the only asset that qualifies. The leading Cryptocurrency commands a total market value of over $ 1.9 trillion, while Ethereum (ETH), the second largest digital asset by market capitalization, amounts to approximately $ 327 billion and not below the proposed threshold.
If the bill is assumed, it is expected to enter into force on 7 May. Comment on the development of the legislation, Teuscher wrote in a recent X post:
Happy to go with @Dennis_porter_ To announce HB230 which allows the state to invest in digital assets. While Utah is the 11th state introduced similar legislation, we will be the first to pass it. Utah continues to lead the nation in blockchain and digital innovation!
Different states working toward BTC -adoption
Teuscher’s statement reflects the broader movement among several US states to integrate Bitcoin into its financial strategies. Utah is not alone in considering Bitcoin reserves, as more than 25 different states have introduced similar legislative measures aimed at creating a strategic Bitcoin reserve.
In May 2024, New Hampshire State Representative Keith Ammon proposed Diversifying the state’s financial reserves by investing in Bitcoin Exchange-Traded Funds (ETFS). Later in October, Florida’s CFO, Jimmy Patronis, prompted The State Pension Fund Manager to explore Bitcoin investments as part of a broader strategy to strengthen the economic resilience.
Similar bills have been introduced in other states, including AlbamaThe MassachusettsThe Southern DakotaThe Ohioand Oklahola. At press time, BTC trades at $ 96,075, an increase of 0.6% over the past 24 hours.
Featured image from unsplash.com, charts from bitcoinlaws and tradingview.com
