While several American states are considering Bitcoin strategic reserves, UTAH takes a step ahead. The HB 230 bill, already approved by the Chamber, is now awaiting the Senate exam. If it passes, Utah would become the first state to officially adopt Bitcoin as a strategic active.
A Bitcoin Strategic Reserve in Utah before the United States
Donald Trump promised to build a Bitcoin strategic reserve and planned to recover the 200,000 BTC seized by the Department of Justice. However, almost half belongs to Bitfinex, making this initiative unrealizable.
For her part, senator Cynthia Lummis offers a reserve of one million BTC over 5 years, with 200,000 BTCs purchased each year. For the moment, these ideas remain at the stage of proposals and David Sacks, appointed by Trump as “Tsar de la Crypto”, explores the feasibility of the creation of strategic reserves in Bitcoin.
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More recently, several American states have been favorable to the creation of Bitcoin strategic reserves. About twenty of them, including Texas and Florida, are currently working on bills in this sense.
UTAH appears to be the most advanced in this approach, in particular with the HB 230 bill, also known as “Blockchain and Digital Innovation Amendments”. This text, which provides for the creation of a Bitcoin Strategic Reserve, has recently been sent to the Senate Committee for Finance and Taxation After being approved by the room by 8 votes to 1.
If this law was adopted, It would allow the Treasurer of the State to invest up to 5 % of public funds in digital assets, such as Bitcoin. It would come into force on May 7, 2025making Utah the 1st American state to adopt such a measure and the 3rd public institution to do so, after Salvador and Bhutan.
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Bitcoin, but no other cryptocurrencies in the reserves of Utah
However, the creation of this reserve in the UTAH proposal is limited to assets whose market capitalization has exceeded $ 500 billion on average in the last 12 months.
The law specifies:
This law authorizes the state treasurer to invest certain public funds in eligible digital assets. […] “Eligible digital active” means: a digital asset with a market capitalization of more than $ 500 billion on average over the last 12 months.
Extract from the UTAH law proposal
Since only Bitcoin exceeds $ 500 billion in capitalizationa threshold crossed in March 2023 when he redeppected the $ 25,000, There is currently the only asset concerned by law.
The ether, with a capitalization of $ 330 billion, only exceeded this threshold, between the month of October and December 2021. ETH cannot therefore be integrated into the UTAH reserves for the moment.
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Even in the event of continuation of the upward trend, It seems less and less likely that ETH can lasting a capitalization greater than $ 500 billiontaking into account his underperformance for over 2 years. In addition, even if it became eligible, his inclusion in the reserves would remain a choice of the treasurer of the state.
As for the other cryptocurrencies, such as XRP, soil or BNB, capitalization is struggling to exceed $ 100 billion, they will probably never be eligible.
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Source: Utah
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First attracted by the bait of gain, I am now trapped Deep the Rabbit Hole. Without a way out, I just have to share my knowledge and transmit the passion I have for Bitcoin. I am also the creator of Adopt A Block, an educational site dedicated to Bitcoin.
Marius Farashi Tasooji
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