From beincrypto by Kamina Bashir

The Utah House of Representatives has passed HB 230, also known as the Blockchain and Digital Innovation Amendments. This marks a significant step in the state’s approach to digital asset investment. 

The bill allows the state of Utah to allocate up to 5% of public funds to qualifying digital assets. It passed with a narrow 38-34 vote, with three abstentions. 

Utah Takes a Bold Step Toward Digital Asset Investment 

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.

“The ‘Strategic Bitcoin Reserve’ bill has officially PASSED the House in the state of Utah,” CEO of Satoshi Action Fund Dennis Porter shared on X (formerly Twitter).

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.

Despite the enthusiasm, some skeptics argue that HB 230 does not explicitly favor Bitcoin. X user Justin Bechler criticized the bill’s language.

“Utah H.B. 230 is not a ‘Strategic Bitcoin Reserve.’ It doesn’t reference Bitcoin once,” Bechler posted.

Bechler argued that the bill is structured to favor stablecoins. He pointed 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. This aligns with centralized stablecoin management rather than Bitcoin’s decentralized ethos.

“Bitcoin is just the bait, stablecoins are the real target,” the post read.

Additionally, Bechler highlighted a money transmitter exemption within the bill. While it facilitates digital asset exchanges, it does not aid Bitcoin adoption in Utah, according to him. 

“Not only is this legislation not a “Strategic Bitcoin Reserve” but, in fact, it specificially prohibits the state from owning Bitcoin,” he further explained.

Nonetheless, Porter pushed back against the criticism.

“Only bitcoin qualifies,” he asserted. 

Porter clarified that the bill was purposely structured to maximize its likelihood of passing into law. He explained that the bill exempts individuals from needing a money transmitter license when running a node or operating a blockchain protocol, such as Bitcoin.

He encouraged Bitcoin supporters to examine the bill carefully. Furthermore, he 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.