Utah’s Digital Asset Gamble: Bitcoin or Stablecoins?

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Utah’s House of Representatives has passed HB 230, the Blockchain and Digital Innovation Amendments, allowing the state to allocate up to 5% of public funds to qualifying digital assets. The bill passed with a narrow 38-34 vote, with three abstentions.

State Representative Jordan Teuscher presented HB 230 on January 21. The bill quickly passed the House Economic Development and Workforce Services Committee with an 8-1-1 vote before gaining approval in the House. It now moves to the Senate for further consideration.

Utah Takes a Bold Step Toward Digital Asset Investment

CEO of Satoshi Action Fund Dennis Porter shared on X (formerly Twitter), “The ‘Strategic Bitcoin Reserve’ bill has officially PASSED the House in the state of Utah.” Porter had previously predicted Utah’s potential to establish the first Bitcoin (BTC) reserve. He cited the state’s short 45-day legislative calendar and the role of its digital asset task force in pushing related initiatives forward.

Besides Utah, Arizona is the only other state with a similar bill nearing approval. The Strategic Bitcoin Reserve Act (SB1025) has passed the Senate Finance Committee and is now awaiting a vote in the House.

However, some skeptics argue that HB 230 does not explicitly favor Bitcoin. X user Justin Bechler criticized the bill’s language, stating, “Utah H.B. 230 is not a ‘Strategic Bitcoin Reserve.’ It doesn’t reference Bitcoin once.” Bechler argued that the bill is structured to favor stablecoins, pointing out that it includes any digital asset with a market capitalization exceeding $500 billion. While this threshold seemingly includes Bitcoin, the legislation separately categorizes stablecoins as qualifying assets. He further noted that the bill mandates asset custody through banks, trust companies, or exchange-traded products, aligning with centralized stablecoin management rather than Bitcoin’s decentralized ethos.

Bechler highlighted a money transmitter exemption within the bill, stating, “Not only is this legislation not a “Strategic Bitcoin Reserve” but, in fact, it specifically prohibits the state from owning Bitcoin.”

Porter pushed back against the criticism, asserting, “Only bitcoin qualifies.” He explained that the bill was purposely structured to maximize its likelihood of passing into law. He also clarified that the bill exempts individuals from needing a money transmitter license when running a node or operating a blockchain protocol, such as Bitcoin. Porter encouraged Bitcoin supporters to examine the bill carefully and firmly rejected the notion that the legislation would restrict Bitcoin ownership.

The bill’s next hurdle is the Senate. Further debates will determine whether Utah’s digital asset strategy will favor Bitcoin or lean toward stablecoins.

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2025-02-07 10:47