The race to determine Bitcoin as a state-level strategic reserve asset has taken a decisive step ahead within the Beehive State. On February 20, Home Invoice 230 (HB230), also referred to as the “Blockchain and Digital Innovation Amendments,” handed the Senate Income and Taxation Committee in a 4-2-1 vote. The laws, which already cleared the state Home of Representatives, now proceeds to a second and third studying within the full Senate. Ought to it reach these readings and obtain a remaining Senate vote of approval, the invoice would solely require Governor Spencer Cox’s signature to change into regulation.
Utah Takes The Lead For A Strategic Bitcoin Reserve
At its core, HB230 authorizes the Utah state treasurer to speculate as much as 5% of sure public reserve funds in digital property. Initially, some public discussions recommended a ten% cap, however the present model units the ceiling at 5%—not as a goal however because the higher restrict. In response to a number of legislative references, the required reserve funds complete roughly $1.4 billion, that means a most of $70 million could possibly be invested in digital property reminiscent of Bitcoin.
The invoice additional restricts which cryptocurrencies might be thought-about. Particularly, digital property should preserve a minimal common market capitalization of $500 billion over the previous 12 months. Presently, Bitcoin is the one cryptocurrency that meets this threshold. Regardless of this focus, the invoice additionally authorizes the treasurer to have interaction in crypto staking—an strategy that doesn’t apply on to Bitcoin however may probably open the door to different high-cap proof-of-stake cryptocurrencies in the event that they surpass the $500 billion cap requirement sooner or later (much like Texas).
In the course of the Senate Income and Taxation Committee listening to, Rep. Jordan Teuscher, the invoice’s major sponsor, detailed the laws’s aims and strategy: “HB230 is the most recent iteration out of the Blockchain Digital Innovation Process Power. [It ensures] how digital property and blockchain is protected and the way the federal government would deal with that and making certain that there aren’t undue prohibitions or restrictions on blockchain. […] the invoice additionally permits for some very restricted investments, preliminary investments by the state treasurer in digital property and a few necessities round how that’s stored in custody.”
Rep. Teuscher clarified that eligible digital property should exceed a $500 billion market capitalization, a criterion that solely BTC at the moment satisfies: “That features that these qualifying digital property are solely these with a market cap of over $500 billion […] and limiting the funds that could possibly be invested in that into simply the 4 funds […], that are among the wet day funds within the state.”
In response to Bitcoin Legal guidelines on X, “UT takes a commanding lead within the Bitcoin Reserve Race. In the present day HB230 handed the Senate Income and Taxation Committee. The Senate will now maintain a 2nd studying. Then a third studying, then a remaining vote. Then the ultimate step is the Governor signing into regulation.”
In response to BitcoinLaws.io, 26 US states at the moment have an energetic Strategic Bitcoin Reserve invoice. In three US states—Wyoming, Pennsylvania, and North Dakota—the Strategic Bitcoin Reserve invoice has already failed.
At press time, BTC traded at $98,915.
Featured picture created with DALL.E, chart from TradingView.com
