As Utahs Bitcoin reserve bill moves through the state senate, the state is about to make history. The Senate Revenue and Taxation Committee recently passed the HB230 ‘Blockchain and Digital Innovation Amendments’ bill by a vote of 4-2-1. This is a step closer to the state legally recognizing Bitcoin as a reserve asset. If the Senate passes the bill and Governor Spencer Cox signs it, Utah will be the first state in the U.S. to keep Bitcoin in its treasury funds.
Bitcoin Reserve Bill Highlights
The HB230 bill outlines several vital rules for Utah’s digital asset reserves. To be a reserve asset, a digital asset must have had an average market capitalization of at least 500 billion dollar over the past year. This is one of the most critical requirements. Now, Bitcoin is the only cryptocurrency that meets this condition.
Additionally, the bill gives the state treasurer the power to buy digital assets and even participate in crypto staking. This is not possible with Bitcoin but with Ethereum (ETH) and other proof-of-stake cryptocurrencies. This could allow Ethereum to join if it meets the market cap requirement.
Political Division and Legislation
There was a clear political split in the committee vote, with all four votes in favor coming from Republican senators. One Democrat and one Republican spoke out against the bill, and one member did not show up to vote. The bill will now be read a second and third time in the Senate. A choice will be made there, and the bill will be sent to the governor for signature.
Utah Crypto Adoption Leads Nation
Utah is becoming a star in the U.S. when it comes to regulating cryptocurrencies. Dennis Porter, CEO of the Satoshi Action Fund, thinks Utah will be the first state to create a Bitcoin reserve. He says this because Utah has a strong political momentum and an efficient legislative schedule. Arizona, Illinois, Texas, and Montana are among the other states that have proposed similar bills but have not made much progress yet.
Conclusion
Utah is showing other states how to add Bitcoin to their banking systems by moving forward with the HB230 bill. Other states could follow suit if it becomes law, bringing Bitcoin even more into mainstream banking.
