Utah Leads: Bitcoin Reserve Bill Passes House, Heads To Senate

Utah’s House of Representatives on February 6 passed House Bill 230 (HB 230), informally referred to as the “Strategic Bitcoin Reserve” bill, by a narrow margin of 38 votes in favor, 34 against, and 3 not voting. HB 230 will now advance to the Senate, where its fate hinges on another vote before ultimately reaching the governor’s desk.

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.

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