Utah has just introduced a groundbreaking bill allowing the state treasury to invest public funds in cryptocurrency, marking an important step in applying blockchain technology to public finance.
Main Contents of the Bill
The bill, titled “Blockchain and Digital Innovation (H.B. 230),” proposed by Representative Jordan Teuscher, will establish a legal framework for investing, staking, lending digital assets, and protecting citizens' rights to manage their cryptocurrency assets.
Teuscher emphasizes: “This bill reflects our commitment to embracing new technologies and preparing for the financial future while ensuring financial autonomy.”
Highlights of the Bill
1. Investment Fund and Limits
• A maximum of 10% of public funds such as the Emergency Reserve Fund, Income Tax Reserve Fund, and Medicaid Budget Stabilization Fund will be allowed to invest in cryptocurrency assets.
2. Investment Conditions
• Cryptocurrency assets must have an average market capitalization of over $500 billion within 12 months.
• Or meet strict stablecoin standards, including:
• Backed by USD or high-quality liquid assets.
• Approved by U.S. regulatory authorities.
3. Security and Storage
• The private key must be stored in an encrypted environment, accessed through an end-to-end secure channel.
• The hardware containing the private key must be stored in at least two geographically distributed secure data centers.
4. Self-Management of Assets
• The state #Utah commits not to impede citizens' right to self-custody of cryptocurrency assets through hardware wallets or self-custody wallets.
Investment Trends in Cryptocurrency by Other States
Utah's bill joins the wave of U.S. states proposing investments in cryptocurrency:
• Oklahoma and New Hampshire: Require cryptocurrency assets to have a minimum market capitalization of $500 billion.
• Texas: Proposes to invest 1% of the budget surplus into Bitcoin and accept donations $BTC .
• Pennsylvania and Ohio: The bill has stalled due to personnel changes.
If passed, this law will take effect on May 7, 2025, making Utah the 11th state in the U.S. to implement regulations for public fund investment in cryptocurrency.
The Meaning of the Bill
The bill not only facilitates Utah in leading blockchain technology but also opens up economic growth opportunities. At the same time, protecting citizens' rights to manage their cryptocurrency assets is an important step in promoting participation and development in the cryptocurrency community.
👉 Utah is leading the trend of adopting blockchain, asserting its position in the digital financial revolution.