Utah Moves Closer to Becoming First U.S. State to Hold Bitcoin Reserves

Utah is on the verge of making history as the first U.S. state to hold Bitcoin as a reserve asset.

The state’s proposed “Blockchain and Digital Innovation Amendments” (HB230) bill successfully passed the Senate Revenue and Taxation Committee on February 20, advancing through a 4-2-1 vote. The bill now moves forward for a second and third reading in the Senate before a final vote determines its fate.

If the bill secures Senate approval, it will head to Governor Spencer Cox’s desk for final authorization. Given the governor’s Republican affiliation, many anticipate he will sign the bill into law, making Bitcoin an official part of Utah’s financial reserves.

The committee vote largely followed party lines, with four Republican senators supporting the bill, while one Republican and one Democrat opposed it. One senator was absent during the vote.

The bill, which has already passed the state’s House of Representatives, would authorize the state treasurer to allocate a portion of Utah’s financial reserves into Bitcoin. The state treasurer would be authorized to allocate up to 5% of digital assets across five key state accounts, including the General Fund Budget, Income Tax Fund Budget, and State Disaster Recovery accounts, with all holdings required to be kept through a qualified custodian or exchange-traded fund (ETF) for security. The bill also grants the state treasurer authority to engage in cryptocurrency staking.

While Utah leads state-level crypto adoption, other states are making progress as well. Montana recently joined Texas and three other US states whose bills for a Bitcoin reserve has moved beyond the introduction phase. Montana’s House Bill 429 passed the state’s House Business and Labor Committee with a 12-8 vote and is now awaiting a vote in the full House floor.

Utah’s bill will take effect on as early as May 7 if enacted. In fact, many industry experts, including Satoshi Action Fund CEO Dennis Porter, believe the state has the necessary political momentum and legislative efficiency to become the first U.S. state to officially incorporate Bitcoin into its financial reserves.

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