Utah Lawmaker Proposes Strategic Bitcoin Reserve Bill

Utah proposes allocating up to 10% of state funds into Bitcoin to boost resilience, diversify resources, and protect self-custody rights.

Deniz Saat

January 21, 2025 @ 5:07 PM PT

A recent proposal in Utah aims to allocate up to 10% of funds from specific state accounts into Bitcoin.

These accounts include the Disaster Recovery Account ($80 million), the General Fund ($4.2 billion), the Income Tax Reserve Account ($7.4 billion), and the Budget Stabilization Fund ($220 million).

🚨Utah Strategic Bitcoin Reserve Bill:

✅ Up to 10% invested from:

- Disaster Recovery Account ($80m)
- General Fund ($4.2b)
- Income Tax Reserve Account ($7.4b)
- Budget Stabilization Find ($220m)

✅ Protects right to self custody

✅ Nodes are *not* money transmitters pic.twitter.com/duhtjBhliw
— Julian Fahrer (@Julian__Fahrer) January 20, 2025

The proposal aims to diversify the state’s financial resources and reduce potential economic risks.

The bill identifies Bitcoin as a hedge against inflation and market volatility due to its decentralized nature.

Representative Jordan Teuscher, the bill’s sponsor, believes incorporating Bitcoin into the state’s portfolio could enhance financial resilience in response to economic challenges or natural disasters.

The legislation also includes provisions to protect Utah residents’ rights to self-custody Bitcoin, ensuring they retain control of their assets.

Additionally, it clarifies that operating Bitcoin nodes does not constitute money transmission, potentially easing regulatory burdens for individuals and businesses involved in supporting the network.

If enacted, the proposal could position Utah as a leader in incorporating Bitcoin into public financial management.