Utah’s Bitcoin Reserve Strategy Gets Green Light with New Crypto Bill

Today the crypto market is under pressure as investors are waiting for the outcome of the FOMC meeting. Around this bearish call, Trump’s Bitcoin Strategy picking pace with 13 US states planning to create a Bitcoin Strategic Reserve out of them Arizona and Utah are leading the race. In the meanwhile, Bitcoin is riding above the $100K mark with a slight decline today it is currently trading at $102,684. 

On January 28, Utah’s House Economic Development Committee passed a bill, HB 230, that could allow the state to invest in cryptocurrencies. The bill passed by an overwhelming 8-1 vote and will now move to the full House for approval.

If the bill clears both the House and Senate, it will be sent to Governor Spencer Cox, a known supporter of cryptocurrencies.

Key Details of the Bill

Dennis Porter, CEO and Co-Founder of SatoshiActFund, announced on X that the Utah House Committee approved the “Blockchain and Digital Innovation Bill.”

This bill includes a provision to adopt Bitcoin as a strategic reserve asset, which shows strong state-level support for cryptocurrency adoption. Porter called the support for the bill “overwhelming,” signaling positive momentum for crypto in Utah.

What the Bill Will Allow

The bill, introduced by Representative Jordan Teuscher, would give Utah’s treasurer the authority to invest up to 5% of certain public funds into “qualifying digital assets.” These assets must include major cryptocurrencies with a market capitalization over $500 billion and approved stablecoins. The bill also allows the state to participate in crypto staking and lending under specific conditions.

To protect these investments, the bill requires Utah’s digital assets to be held by qualified custodians, using exchange-traded products or secure custody solutions. It also ensures that state and local governments cannot restrict the use of cryptocurrencies for legal goods and services, allowing crypto to be used for transactions in Utah.

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Crypto – Now a Nationwide Trend?

Utah is not the only state exploring public crypto investments. Twelve other states, including Arizona and Wyoming, have introduced similar bills, with Utah’s bill being the first to clear committee. If approved, the bill will take effect on May 7.

Governor Spencer Cox, who signed a 2022 bill to create a Blockchain and Digital Innovation Task Force, is a strong advocate for blockchain. This suggests that he will likely approve the bill. Other states, such as South Dakota, are also considering similar measures.

This growing trend shows increasing support for cryptocurrency at the state level.