On January 28, a Utah House committee approved a bill that would allow the state to invest public funds in cryptocurrencies. The Utah House Economic Development Committee passed HB 230, also known as the Blockchain and Digital Innovation Amendments, with an 8-1 vote. This bill now heads to the full House for further consideration.
Proposed by Representative Jordan Teuscher on January 21, the bill aims to empower the state’s treasurer to invest up to 5% of certain public funds in “qualifying digital assets.” These assets include cryptocurrencies with a market capitalization exceeding $500 billion and approved stablecoins.
On the same day it was passed, the bill was updated to include provisions related to crypto mining zoning restrictions. This reflects a growing interest in regulating the cryptocurrency sector more effectively. If the bill gets majority approval in both the House and the Senate, it will be sent to Governor Spencer Cox for final approval.
Utah is not alone in this venture. According to the Bitcoin Reserve Monitor, twelve other U.S. states, including Arizona and Wyoming, have introduced similar legislation. Notably, Utah’s bill is among the first to advance out of committee. Teuscher emphasized this progress on X, stating, “While Utah is the 11th state to introduce similar legislation, we will be the first to pass it.”
If enacted, the bill would require that the state’s digital assets be held securely. Options include using qualified custodians, secure custody solutions, or exchange-traded products. Additionally, it allows the treasurer to engage in staking and lending of crypto assets under specific conditions. Importantly, the legislation would prevent state and local governments from restricting the use of crypto as payment for legal goods and services.
Governor Spencer Cox, who is seen as supportive of cryptocurrency initiatives, previously signed a bill to establish a Blockchain and Digital Innovation Task Force in 2022. This indicates a broader commitment to embracing digital currencies in Utah.
In South Dakota, Representative Logan Manhart is also pursuing a similar path. He announced his intention to introduce a bill that would create a strategic Bitcoin reserve. Manhart expressed his enthusiasm on X, stating, “Now is one of the few chances government has at being proactive.”
As Utah moves forward with its crypto ambitions, the potential impacts on the local economy and digital asset landscape could be significant.
