The Utah House Economic Development Committee introduced a bill that would allow the state to allocate a portion of public funds for cryptocurrency investments. The bill, known as HB 230, or the Blockchain and Digital Innovation Amendments, passed by a vote of 8-1 on January 28.
Introduced by Utah Rep. Jordan Teuscher on Jan. 21, the proposed legislation would allow the state treasurer to invest up to 5% of certain public funds in “qualified digital assets.” These assets include assets with a market capitalization of more than $500 billion and certain approved stablecoins.
The bill was revised on Jan. 28 to include a second substitute version, which added provisions for zoning restrictions on crypto mining. After committee approval, the bill will go to the House. If it gets majority approval there and in the Senate, it will go to Gov. Spencer Cox for his signature or veto.
Utah is part of a growing trend among U.S. states considering integrating cryptocurrency into their financial strategies. According to the Bitcoin Reserve Monitor, twelve states, including Utah’s neighbors Arizona and Wyoming, have introduced similar bills to allow local treasuries to purchase cryptocurrency.
The bill would require any digital assets acquired by Utahns to be held through a secure storage solution, qualified custodian, or exchange-traded product. Additionally, the bill would give the treasurer the authority to engage in staking and lending of crypto assets under certain conditions and would prevent state and local governments from prohibiting the acceptance of cryptocurrency as payment for lawful goods and services.
If the bill clears all the necessary hurdles, it is scheduled to go into effect on May 7. Governor Cox, who has previously shown support for crypto initiatives by signing a bill to establish a Blockchain and Digital Innovation Task Force in 2022, will ultimately decide the bill’s fate.
The move toward state-level cryptocurrency adoption isn’t unique to Utah. South Dakota Rep. Logan Manhart has also expressed support for the concept, announcing on January 28 his intention to introduce a bill aimed at creating a strategic Bitcoin reserve for the state.