Utah continues to keep pace with global financial innovation. HB230, the Blockchain and Digital Innovation Amendments, passed the Utah Revenue and Taxation Subcommittee on Feb. 20 by a 4-2-1 vote and now heads to second and third readings before a final vote in the Senate.

To qualify as a reserve asset, a digital asset must have an average market cap of $500 billion or more over the last calendar year. Bitcoin is currently the only digital asset that currently meets this requirement.

The bill also allows the state Treasury to participate in cryptocurrency staking, a feature that cannot be used with Bitcoin directly, suggesting that Ethereum and other proof-of-stake cryptocurrencies could be included in the future.

The state Treasury can invest up to 5% of digital assets in each of the five listed state accounts, which include the General Fund budget, the Income Tax Fund budget, and the state disaster recovery accounts.

The main idea of the initiative is to diversify state assets and protect the economy from inflation risks. Lawmakers believe that integrating Bitcoin into state reserves will help create a more sustainable financial system and reduce dependence on traditional assets.

Proponents of the project are confident that such a decision will not only strengthen the economic stability of Utah, but will also become an example for other US states wishing to take advantage of digital assets. If the bill is passed, Utah will become one of the first jurisdictions to officially integrate Bitcoin into its reserves.

This initiative demonstrates the government's desire to adapt to the changing global financial landscape and support innovative technologies in the economy.