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A Utah house committee made a big move by voting 8-1 in favor of a bill that would let the state invest in Bitcoin and other cryptocurrencies. If it becomes law, Utah could be the first U.S. state to create a Bitcoin reserve.
The CEO of Satoshi Action (WA:ACT) Fund, Dennis Porter, expressed confidence in an interview with US Senator Cynthia Lummis shared on February 2, stating that Utah has a "very good shot" at being the first state to achieve this milestone. Porter cited the state’s short 45-day legislative window and strong political momentum as key factors contributing to this potential outcome. The interview, which took place on January 21, highlighted the urgency of the decision-making process in Utah’s legislature.
The bill under consideration would allow Utah to diversify a portion of its public funds into Bitcoin, other cryptocurrencies with a market capitalization above $500 billion, and approved stablecoins. This move is seen as a proactive step towards embracing digital assets within the state’s financial strategy.
Historically, bills passed by the Utah House Economic Development Committee have a strong track record of becoming law, as noted by Porter. He stated, "Every single bill that has been passed by the Utah House Economic Development Committee over the last several years was ultimately passed into law," underscoring his belief that Utah will lead the way in this legislative area.
While Utah is at the forefront, Arizona is the only other state that has advanced to a similar stage in the legislative process for establishing a Bitcoin reserve. Other states, including Illinois, Ohio, Massachusetts, New Hampshire, North Dakota, Oklahoma, Pennsylvania, Texas, and Wyoming, have introduced similar bills.
Additionally, state officials in Alabama, Florida, Kentucky, and South Dakota have publicly endorsed the idea of a Bitcoin reserve, although no bills have been introduced in these states yet.
On a federal level, Senator Lummis mentioned in the January 21 interview that progress is being made on a Bitcoin reserve bill she introduced, which aims for the US to acquire 1 million Bitcoin over the next five years. The bill would require bipartisan support in the Senate, with at least 60 votes needed for passage.
The proposed federal bill outlines various methods for the US to accumulate Bitcoin, including repurposing Bitcoin seized from asset forfeitures and potentially selling a portion of the country’s gold reserves.
According to asset manager VanEck, if Bitcoin’s price increases at a compounded annual growth rate of 25% and US national debt continues to rise at 5% CAGR, the US could reduce its national debt by 35% by 2049 through strategic Bitcoin investments.
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