- Utah proposes a bill to invest public funds in digital assets like Bitcoin
- Only assets with a market cap over $500 billion are eligible for investment
- The bill could lead to a significant inflow of Bitcoin into the market
U.S. States are already on the move to create major Bitcoin reserves. Recently, Utah proposed a bill to allow public funds to be invested in digital assets.
The proposal named “Blockchain and Digital Innovation Amendments”, aims to allow the State treasury to allocate up to 10% of its total supply in Bitcoin. Also, the bill will allow the treasury to allocate funds to other digital assets, such as NFTs, altcoins, and stablecoins.
While the bill implies that Utah could add several different types of cryptocurrencies to its reserves, there is a twist. The proposal put forward by Republican State Representative Jordan Teuscher has a condition that the Beehive State is only allowed to purchase assets with a market capitalization of over $500 billion averaged over the previous 12 months.
Currently, Bitcoin is the only cryptocurrency with a market cap of over $500 billion, meaning that this prerequisite rules out the majority of digital assets.
Nonetheless, if the proposal is eventually approved by the Utah House of Representatives and the Senate — it would be a meaningful step forward for the government’s plans of creating a nationwide strategic Bitcoin Reserve.
Utah registered a total of $29.4 billion in state funds in 2024 from General Funds and tax income funds. A significant portion of this funding is allocated to various key accounts, such as the State Disaster Recovery Restricted Account, the General Fund Budget Reserve Account, the Income Tax Fund Budget Reserve Account, and the Medicaid Growth Reduction and Budget Stabilization Account.
Under the new Blockchain and Digital Innovation Amendments, these accounts are eligible to invest up to 10% of their funds in qualifying digital assets. For the crypto sector, the result would be an inflow of potentially up to $7 billion in Bitcoin into the market.
MARA CEO Predicts All U.S. States to Add BTC to Reserves
Fred Thiel, CEO of the largest Bitcoin mining firm in the world MARA, recently revealed that the company is now focusing on helping all 50 U.S. states to create a nationwide Strategic Bitcoin Reserve.
Adding Bitcoin to the U.S. reserves would be a significant milestone that would likely benefit the government as well as the cryptocurrency market. The goal of such a plan is to use BTC as a way to protect American assets from inflation. On the market side of things, a Bitcoin reserve would solidify Bitcoin and other digital currencies as a financially valuable asset, offering more market stability and fewer restrictions from regulators.
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