Utah Competes With Illinois, Texas To Become First US State To Establish Bitcoin Reserve

Utah is on track to become the first US state to establish a Bitcoin reserve, propelled by political momentum and a fast-moving legislative process.

With a 45-day legislative window, Utah has a unique opportunity to pass a bill allowing the state to invest public funds into Bitcoin, positioning it as a leader in state-level digital asset adoption.

According to Satoshi Action Fund CEO Dennis Porter, Utah’s compressed legislative calendar gives it a significant edge over other states considering similar legislation.

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However, states like Illinois are in competition to become the first US state to establish a Bitcoin Reserve as part of its fiscal strategy. The proposed legislation, known as the Strategic BTC Reserve Act, was introduced by Illinois State Representative John Cabello and referred to the Rules Committee on 29 January 2025.

Furthermore, Texas also introduced a new bill to establish a strategic BTC reserve.

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“No One Else Has a Faster Calender“

In a 2 February 2025 interview with US Senator Cynthia Lummis and Porter, Lummis said that “no one else has a faster calendar, and no one else has more political momentum and willpower to get it done.”

She reiterated his confidence in Utah’s ability to move forward quickly.

The push for a state-backed Bitcoin reserve gained traction on 28 January 2025, when a Utah House committee voted 8-1 in favor of a bill. This would allow the state to invest in Bitcoin, other cryptocurrencies with a market cap above $500 billion, and approved stablecoins.

Porter highlighted that historically, every bill passed by the Utah House Economic Development Committee has eventually been signed into law. This reinforces expectations that Utah will lead the charge.

While Arizona is the only other state that has reached this stage in the bill’s lifecycle, several others, including Illinois, Ohio, Massachusetts, New Hampshire, North Dakota, Oklahoma, Pennsylvania, Texas, and Wyoming, have introduced similar legislation.

Additionally, state officials in Alabama, Florida, Kentucky, and South Dakota have publicly endorsed the idea of a Bitcoin reserve. However, none have yet introduced formal bills.

At the federal level, Senator Lummis is advocating for a national Bitcoin reserve. She proposed a bill that would see the US acquire 1 million Bitcoin—or 5% of the total supply—over the next five years.

Furthermore, she acknowledged that while progress is being made, the bill requires at least 60 votes in the Senate to secure bipartisan support.

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US Could Repurpose 200k Seized Bitcoins

Under this plan, the US could repurpose 198,100 Bitcoin. These were obtained through asset seizures and through a combination of Emergency Support Functions and gold reserve sales.

A VanEck analysis suggests that if Bitcoin’s value grows at 25% annually, the US could reduce its national debt by 35% by 2049.

Utah’s move comes as other states explore similar initiatives.

On 28 January 2025, South Dakota Representative Logan Manhart announced plans to introduce a bill that would establish a strategic Bitcoin reserve for his state.

In December 2024, Texas Representative Giovanni Capriglione introduced the Texas Strategic Bitcoin Reserve Act, which proposes that the state comptroller hold Bitcoin as a reserve asset for at least five years.

Pennsylvania took a similar step in November. Representative Mike Cabell proposed  a bill to allow its treasury to allocate up to 10% of its balance sheet in Bitcoin. He cited the asset’s potential to hedge against economic uncertainty.

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