Utah – Earlybirds Invest

Utah is making progress toward becoming the first US state to hold Bitcoin
BTC

$96,675.42

in its reserves.

The proposed bill, known as HB230, that would allow a portion of state funds to be allocated to digital assets has passed the state’s House and is now awaiting review in the Senate.

The HB230 was introduced by Representative Jordan Teuscher on January 21. It aims to allow the state treasurer to invest up to 5% of certain public funds in digital assets, including Bitcoin, stablecoins, and other widely recognized cryptocurrencies.

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Dennis Porter, founder and CEO of the Satoshi Action Fund, said in a February 6 post on X:

The ‘Strategic Bitcoin Reserve’ bill has officially passed the House in the state of Utah. The bill now moves onto the Senate.”

On January 28, the Utah House Economic Development Committee approved the bill with an 8-1 vote, which pushed it forward for further consideration. The next step is a review by the state Senate. If it passes there, the bill will be sent to the governor, who will decide whether to sign it into law or reject it.

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Utah is not the only state considering this kind of legislation. Arizona has been working on a similar measure, SB1025, which passed the Senate Finance Committee on January 27 and is currently awaiting a vote in the House.

Meanwhile, on February 4, Senator Bill Hagerty proposed a bill that set clear rules for stablecoins. What is it? Read the full story.

Utah Leads The Bitcoin Reserve Race

Officially titled the “Blockchain and Digital Innovation Amendments,” HB 230 permits the Utah state treasurer to invest up to 5% of designated public funds in qualifying digital assets. These assets, as the bill stipulates, must either possess a market capitalization exceeding $500 billion or be approved stablecoins.

Security requirements are embedded in the legislation, mandating that any digital assets acquired be custodied through qualified custodians, exchange-traded products, or other regulated entities. Additionally, the bill allows for staking and lending of these assets under defined guidelines to ensure risk management and legal compliance.

A noteworthy section of the bill protects Utah residents’ rights to hold and control their own digital assets, effectively shielding lawful cryptocurrency usage from state or local government restrictions.

The close margin of the House vote—38 “Yes” to 34 “No”—signals both robust support and significant opposition. Representative Jordan Teuscher, who introduced the bill on January 21, secured initial backing in the Utah House Economic Development Committee, where the measure passed 8-1 on January 28.

With House approval now secured, HB 230 moves to the Senate. Should it pass that chamber, the bill will await consideration from Governor Spencer Cox, who has historically shown support for blockchain-based initiatives.

Dennis Porter, founder and CEO of Satoshi Action Fund, has been a crucial figure of US states introducing strategic Bitcoin reserve bills. Announcing the news on January 6 via X, Porter said, “MASSIVE BREAKING: The ‘Strategic Bitcoin Reserve’ bill has officially PASSED the House in the state of Utah – The bill now moves onto the Senate!”

He emphasized the significance of Utah’s position, noting that this is the first time an SBR (Strategic Bitcoin Reserve) measure has successfully cleared a full chamber vote.

In a video statement on X, Porter elaborated: “The Strategic Bitcoin reserve bill has just passed the House in the state of Utah. This is a huge movement that we’ve been waiting for for a long time. At Satoshi Action, we’ve been working overtime to make sure that these bills actually make it across the finish line. We don’t just work on the model policy. We don’t just work on getting it introduced. We also work hand in hand with those lawmakers to make sure that they are able to get this across the finish line.”

Porter further praised Utah as “a clear leader on financial policy” and highlighted the state’s strong track record in various economic sectors: “This is a huge moment for Bitcoin, as Utah is a clear leader on financial policy. They rank on all types of different metrics. They are the best at so many different things. And now they are the first to get it across the finish line.”

Although the bill’s language encompasses digital assets over $500 billion in market cap, Porter addressed why Bitcoin itself is not named outright. In response to a user on X, he said: “Please read the bill. Only bitcoin qualifies. See the bill text below. We intentionally draft it this way because it DRAMATICALLY increases the odds the bill will become law. Do you want states to buy bitcoin? Our approach is the most effective path.”

Utah’s progress marks a pivotal moment in the broader national dialogue on state-level Bitcoin reserves. According to bitcoinlaws.io, 17 US states have introduced similar SBR measures.

Arizona is closest on Utah’s heels. The “Strategic Bitcoin Reserve Act” (SB1025), co-sponsored by Arizona’s Senator Wendy Rogers and Representative Jeff Weninger, cleared the Senate Finance Committee on January 27 and awaits a House vote.

Meanwhile, on February 4, New Mexico joined the fray with Senator Ant Thornton’s SB57, underscoring an intensifying race among states to adopt Bitcoin-friendly policies.

At press time, BTC traded at $97,248.

Bitcoin price, 1-week chart | Source: BTCUSDT on TradingView.com

Featured image created with DALL.E, chart from TradingView.com