A new financial trend is gaining momentum across the United States as more states explore integrating Bitcoin and other cryptocurrencies into their public funds strategy. With 16 states actively discussing or proposing legislation to include digital assets in their state budgets, it’s clear that a shift in fiscal policy is underway. Utah is leading the charge, with its Blockchain and Digital Innovation Amendments bill gaining traction as one of the first concrete steps toward state-backed Bitcoin reserves.
Utah has emerged as the state closest to implementing a Bitcoin and cryptocurrency-based public fund policy. On January 28, 2025, Utah’s Economic Development and Workforce Services Committee passed the Blockchain and Digital Innovation Amendments bill by an 8-1 majority vote, recommending it for a third reading in the House. The bill empowers the state treasurer to allocate up to 5% of certain public funds to “qualifying digital assets.”
However, there is a crucial condition: the digital assets must have a market capitalization of over $500 billion, averaged over the past 12 months. While the bill does not directly mention Bitcoin, the cryptocurrency uniquely meets this threshold, making it the primary digital asset that could potentially benefit from the bill. Despite this, Bitcoin advocates have debated the specifics of the bill, with some pointing to potential legal obstacles due to Utah’s Money Transmitter Act.
thecurrencyanalytics.com
by Steven Anderson
February 8, 2025