The Utah Senate’s Revenue and Taxation Committee (USA) will review a bill proposing the establishment of a strategic reserve in the leading cryptocurrency (SBR). This follows its approval by the state’s House of Representatives.
The document, titled H.B. 230, received eight votes in favor, with one legislator opposing.
The initiative allows for the investment of up to 5% of the state’s free funds in “qualified digital assets.” These include cryptocurrencies with an average market capitalization exceeding $500 billion over the past 12 months or stablecoins.
If passed, the bill will come into effect on May 7, 2025.
In February, Satoshi Action Fund CEO Dennis Porter named Utah as the leading contender to launch the SBR.
Overall, similar initiatives are being considered by 20 states. Recently, Michigan joined this race.
VanEck estimated that the adoption of such bills would create additional demand for bitcoin amounting to 242,787 BTC ($23.5 billion). The estimate is conservative, as it does not include potential investments from pension funds.
In January, U.S. President Donald Trump announced the formation of a task force on digital assets, led by special advisor on AI and cryptocurrencies David Sachs.
One of the structure’s tasks is to assess the prospects of implementing the SBR. In a recent interview, the official confirmed they are “studying” the issue.
The largest publicly traded miner by market capitalization, MARA Holdings, has joined efforts to lobby for the creation of bitcoin reserves at the federal level and in all 50 states.
In December, VanEck calculated that the launch of a strategic bitcoin reserve could help the U.S. reduce its national debt by 35% by 2050. They believe that by 2049, digital gold will rise to $42.3 million, showing a CAGR of 25%.
Strategy founder Michael Saylor estimated the SBR’s effect on the U.S. at $81 trillion.
According to Sygnum’s calculations, the purchase of the first cryptocurrency for a national bitcoin reserve worth $1 billion would lead to a $20 billion increase in the asset’s capitalization.
Previously, analyst Thomas Farrer predicted a $50,000 rise in digital gold prices per minute once U.S. authorities confirm the creation of the SBR.