A new bill to establish a strategic cryptocurrency reserve in Utah has cleared a major hurdle, prompting discussions on how XRP could meet the investment requirements.
The bill, known as HB230, recently passed in the Utah House of Representatives and is now advancing to the Senate for further review. If approved and signed into law by the governor, the initiative would allow the state treasurer to allocate up to 5% of certain public funds to digital assets.
Criteria for Digital Asset Investment
The legislation outlines specific requirements for cryptocurrencies to be considered for investment under the state’s strategic reserve. One key condition is that a digital asset must have maintained a market capitalization of at least $500 billion over the past 12 months.
Currently, Bitcoin is the only cryptocurrency that meets this threshold, as it has consistently held a market cap exceeding $1 trillion. Other leading assets, such as Ethereum and XRP, do not yet qualify. Ethereum’s market capitalization stands at approximately $317 billion, while XRP’s is around $140 billion.
XRP Price Needed to Meet Eligibility Requirements
For XRP to be included in Utah’s strategic crypto reserve, it would need to increase its market capitalization by an additional $360 billion and sustain that level for a full year. This raises questions about the specific price point at which XRP could meet the requirement.
According to pro-XRP attorney Fred Rispoli, the cryptocurrency would need to be valued at $5 per unit to qualify. However, some observers have pointed out that this estimate may not fully account for XRP’s circulating supply.
To be fair it is codified in a way that—at present—only Bitcoin qualifies. But $XRP would qualify at $5.
— Fred Rispoli (@freddyriz) February 7, 2025
With a circulating supply of 57.76 billion tokens, XRP’s market capitalization at a $5 price point would be approximately $288.81 billion—still below the $500 billion requirement.
Rispoli contends that the correct evaluation should consider XRP’s total maximum supply of 99.98 billion tokens. Under this approach, a $5 price would result in a fully diluted market capitalization of roughly $500 billion, allowing XRP to meet the eligibility threshold.
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Alternatively, if the calculation is based on the more commonly used circulating supply metric, XRP must trade above $8.65 to surpass the $500 billion market cap requirement.
Potential Inclusion of XRP in Government Reserves
Beyond Utah’s proposed strategic crypto reserve, XRP supporters are also optimistic about the asset’s possible inclusion in a broader U.S. government digital asset reserve. While this remains a topic of discussion, no formal decision has been made regarding whether federal authorities will establish such a reserve.
For now, Utah’s initiative represents a significant step in recognizing digital assets as part of government investment strategies. However, unless XRP’s market capitalization significantly increases and maintains that level over time, it will not yet qualify for inclusion in the state’s reserve fund.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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