Utah has moved a step closer to creating a Bitcoin reserve after its Senate Revenue and Taxation Committee passed the Blockchain and Digital Innovation Amendments bill.
According to the latest update on the Utah State Legislature’s official website, House Bill 230 was cleared with a 4-2-1 vote, with no support from Democrats and one Republican opposing the bill, while one senator was marked absent.
Following the February 20 voting session, the bill will now head to the full Senate for a second and third reading.
If it clears both readings, the bill will move to a final Senate vote.
Should it pass the final hurdle, the bill will be sent to Governor Spencer Cox for approval.
If signed into law, Utah would officially become the first US state to hold Bitcoin as a reserve asset, with the bill set to take effect by May 7, 2025.
Considering that Cox is also a Republican, and with strong party support behind the bill so far, there’s a high chance it will receive his signature and become law.
Utah is currently at the most advanced stage of establishing a Bitcoin reserve compared to other US states.
Utah Representative Jordan Teuscher introduced the bill in late January.
Last month, HB 230 passed the Utah House Economic Development Committee with an 8-1 vote.
According to experts like Satoshi Act Fund founder Dennis Porter, Utah’s fast-paced legislative process and strong political momentum make it the frontrunner to pass a strategic Bitcoin reserve bill first.
As previously reported by Invezz, Porter believes Utah’s dedicated digital asset task force and its efficient 45-day legislative window give it a clear edge over other states.
Even Senator Cynthia Lummis, a long-time advocate for Bitcoin at the federal level, has acknowledged that states like Utah are leading the charge and could set the standard for others to follow.
What is HB 230?
House Bill 230 proposes allowing the state treasurer to allocate up to 5% of public funds, like the General Fund Budget and the State Disaster Recovery Fund, into “qualifying digital assets” such as Bitcoin, high-cap cryptocurrencies, and stablecoins.
It also permits the treasurer to partake in crypto staking.
However, the bill outlines strict custody requirements, mandating that all crypto investments must be held through secure custodians, exchange-traded products, or by staking.
Other US states are catching up
Currently, only Arizona, Oklahoma, and Montana have advanced their respective crypto reserve bills to the House, while 20 other states have proposed similar legislation, according to Bitcoin Reserve Monitor.
Meanwhile, Wyoming, North Dakota, and Pennsylvania are the only three states to have rejected similar proposals.
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