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 achieve these readings and obtain a closing Senate vote of approval, the invoice would solely require Governor Spencer Cox’s signature to turn out to be regulation.
Utah Takes The Lead For A Strategic Bitcoin Reserve
At its core, HB230 authorizes the Utah state treasurer to take a position as much as 5% of sure public reserve funds in digital belongings. Initially, some public discussions urged a ten% cap, however the present model units the ceiling at 5%—not as a goal however because the higher restrict. In keeping with a number of legislative references, the desired reserve funds complete roughly $1.4 billion, that means a most of $70 million may very well be invested in digital belongings akin to Bitcoin.
The invoice additional restricts which cryptocurrencies may be thought of. Particularly, digital belongings should keep a minimal common market capitalization of $500 billion over the previous 12 months. At present, Bitcoin is the one cryptocurrency that meets this threshold. Regardless of this focus, the invoice additionally authorizes the treasurer to interact in crypto staking—an method 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 (just like Texas).
Throughout the Senate Income and Taxation Committee listening to, Rep. Jordan Teuscher, the invoice’s major sponsor, detailed the laws’s targets and method: “HB230 is the newest iteration out of the Blockchain Digital Innovation Activity Power. [It ensures] how digital belongings and blockchain is protected and the way the federal government would deal with that and guaranteeing 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 belongings and a few necessities round how that’s saved in custody.”
Rep. Teuscher clarified that eligible digital belongings should exceed a $500 billion market capitalization, a criterion that solely BTC at present satisfies: “That features that these qualifying digital belongings are solely these with a market cap of over $500 billion […] and limiting the funds that may very well be invested in that into simply the 4 funds […], that are a number of the wet day funds within the state.”
In keeping with Bitcoin Legal guidelines on X, “UT takes a commanding lead within the Bitcoin Reserve Race. As we speak HB230 handed the Senate Income and Taxation Committee. The Senate will now maintain a 2nd studying. Then a third studying, then a closing vote. Then the ultimate step is the Governor signing into regulation.”
In keeping with BitcoinLaws.io, 26 US states at present 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
