Utah Moves Forward with Plan to Add Bitcoin to State Treasury
Utah's legislative bodies are moving closer to allowing Bitcoin investments as part of the state's reserve strategy. House Bill 230, known as the "Blockchain and Digital Innovation Amendments," passed the Senate Revenue and Taxation Committee on February 20 with a 4-2-1 vote. The bill has already received approval from the state House of Representatives.
The proposed legislation would authorize the Utah state treasurer to invest up to 5% of specific public reserve funds in digital assets. With these funds currently totaling approximately $1.4 billion, the maximum potential Bitcoin investment would be capped at $70 million. This represents a reduction from earlier discussions that suggested a 10% investment ceiling.
The bill includes strict criteria for cryptocurrency investments. To qualify, digital assets must maintain an average market capitalization of at least $500 billion over 12 consecutive months. Currently, Bitcoin is the only cryptocurrency meeting this requirement. While the legislation also permits crypto staking activities, this provision may become relevant for other high-cap proof-of-stake cryptocurrencies if they reach the market cap threshold in the future.
Representative Jordan Teuscher, who sponsored the bill, explained during the Senate committee hearing that the legislation emerged from the Blockchain Digital Innovation Task Force. The bill aims to establish clear guidelines for digital asset treatment while allowing limited state investments under specific custody requirements.
For the bill to become law, it must still complete several steps:
- Pass a second reading in the Senate
- Clear a third reading
- Receive final Senate approval
- Obtain Governor Spencer Cox's signature
The advancement of this legislation positions Utah as a leader in state-level Bitcoin adoption, potentially setting a precedent for other states considering similar reserve strategies. The bill's careful approach to investment limits and asset qualification demonstrates a balanced consideration of innovation and fiscal responsibility in public fund management.
This legislative momentum extends beyond Utah's borders, as Montana's House Business and Labor Committee recently approved House Bill 429, known as the "Inflation Protection Act of 2025." The Montana bill, which passed with a 12-8 vote, would allow up to $50 million in state investments in digital assets and precious metals.
These state-level initiatives are part of a larger trend, with twenty U.S. states considering similar measures that could result in up to $23 billion in total investments. Among these states, Arizona leads with a proposed allocation of up to $8.7 billion, while Florida is exploring a $3 billion investment. The movement coincides with the growth of the U.S. Bitcoin mining industry, which now generates $4.1 billion in annual gross product and supports over 31,000 jobs nationwide.
