Utah Advances Bitcoin Reserve Bill, Poised for Implementation

Utah’s Bitcoin reserve bill, HB230, has passed its Senate committee stage and is set for further readings. If cleared, it could see Bitcoin designated as a state reserve asset by Governor Spencer Cox. The bill also allows for crypto staking and the investment of 5% of digital assets in state funds. Implementation may begin as early as May 7, positioning Utah as a leader in cryptocurrency regulation.

Utah is making waves as it advances its Bitcoin reserve bill, bringing Bitcoin closer to designation as a state reserve asset. This significant initiative, known as HB230 “Blockchain and Digital Innovation Amendments,” moved past the Senate Revenue and Taxation Committee with a 4-2-1 vote on February 20. It now awaits further readings in the Senate before a final vote.

Having already cleared the House, the bill needs only the approval of Republican Governor Spencer Cox to transform Bitcoin into an official reserve asset for Utah. Political support is clear, with four Republican senators endorsing the bill, though its passage saw dissent from one Republican and one Democrat, while another senator was absent.

To qualify as a reserve asset, a digital currency must show a market capitalization averaging above $500 billion over the previous year; Bitcoin currently stands as the sole contender meeting this criterion. Ethereum did breach this mark in 2021 but failed to maintain it consistently.

Beyond Bitcoin, the bill empowers the state treasurer to engage in crypto staking, hinting at future inclusion of proof-of-stake assets like Ether. The state may allocate up to 5% of digital assets to various funds, including the General Fund and State Disaster Recovery accounts, with investments needing to be held by qualified custodians or ETFs.

If passed, the bill would pave the way for implementation by May 7. Utah has been commended for its regulatory advances in cryptocurrency, with experts like Satoshi Action Fund CEO Dennis Porter predicting that Utah could be the first US state to fully adopt a Bitcoin reserve. Several other states have also pushed similar initiatives, while US Senator Cynthia Lummis actively seeks a federal Bitcoin reserve bill.

Utah’s progression with the Bitcoin reserve bill highlights its intent to lead in the realm of cryptocurrency regulation. With strong political backing, a clear path to implementation, and the ability to potentially include other digital assets, Utah is positioning itself at the forefront of this evolving financial landscape. As more states contemplate similar legislations, Utah’s actions may inspire a wave of cryptocurrency innovation nationwide.

Original Source: cointelegraph.com