Utah is in the lead to become the first state in the US to have a bitcoin reserve. With a fast-moving legislative calendar and strong political backing, the state is moving quickly to pass a bill that would allow a portion of public funds to be invested in bitcoin.
Utah’s legislative process is one of the fastest in the country, with only 45 days to introduce, debate and pass a bill. No other state has a faster calendar or the political will to do it.
Dennis Porter, CEO of the Satoshi Action Fund, has been the main driver of the initiative.
“It’s either sink or swim in 45 days. No other state has a faster calendar, and no one else has the political momentum and willpower to get it done.” said Porter.
“We think we’ll get to 15 states within 2025 alone. It could be many more than that.” He said some states have multiple bills as lawmakers are racing to be the first in their region to have a reserve.
The bill, proposed by State Representative Jordan Teuscher, just passed the House Committee on Economic Development with an 8-1 vote. Historically, bills that pass this committee become law.
Proponents say holding bitcoin can help states hedge against inflation and economic downturns. It also allows for financial diversification beyond cash and gold.
If the bill becomes law, Utah state treasurers could allocate up to 5% of public funds into bitcoin. It’s seen as a proactive move to get the scarce digital asset into state’s financial management.
While Utah is ahead of the pack, several other states are also exploring similar legislation. Arizona is the only other state that has a bitcoin reserve bill as far along as Utah.
Other states including Wyoming, Texas, Illinois, Ohio, Massachusetts, North Dakota, Oklahoma, Pennsylvania and New Hampshire have also introduced bitcoin reserve bills.
At the federal level, U.S. Senator Cynthia Lummis of Wyoming has a bill to create a federal bitcoin reserve. She wants the U.S. to buy 1 million bitcoin over the next 5 years. That’s 5% of the total bitcoin in existence.
Lummis thinks states will benefit from Bitcoin before a national reserve is established. “States are the innovators of the country, they’re the incubators of innovation,” she said. She also noted Wyoming is getting bipartisan support for its own reserve bill.
Proponents of a bitcoin reserve say the scarce digital asset provides protection against inflation and government overspending. Unlike the US dollar which can be printed unlimited, bitcoin has a fixed supply so it’s a hard asset.
Porter pointed out the financial security that bitcoin can provide for states. “They have the ability to protect themselves from the debasement that is occurring at the federal level and ensure that they can continue to pay for the programs that they currently have without having to raise taxes,” he said.
If Utah’s bill makes it through the full legislature and is signed by the governor, it will be a trendsetter. Governor Spencer Cox has been supportive of blockchain in the past so if it gets to his desk he’ll probably sign it.
