A significant development has emerged from Utah, where a House committee has advanced legislation permitting the state to invest a portion of public funds in cryptocurrency. The bill, known as HB 230, titled the Blockchain and Digital Innovation Amendments, received an 8-1 vote in favor during a committee meeting on January 28. It will now be presented to the full House for further consideration.
Introduced by Representative Jordan Teuscher on January 21, the bill seeks to grant the state treasurer the authority to allocate up to 5% of designated public funds towards the purchase of qualifying digital assets. These assets include cryptocurrencies that possess a market capitalization exceeding $500 billion and approved stablecoins. Notably, the latest version of the bill, updated on January 28, incorporates specific provisions aimed at regulating crypto mining operations.
For the bill to be enacted, it must secure majority support in both the House and the Senate before being sent to the governor for final approval. Utah joins a growing list of states, totaling twelve, that have introduced legislation allowing their treasuries to invest in cryptocurrencies. These states include neighboring Arizona and Wyoming.
The proposed legislation also stipulates that any digital assets acquired must be held in secure custody solutions through qualified custodians or exchange-traded products. Additionally, it grants the treasurer permission to engage in staking and lending of crypto assets, subject to certain conditions. Crucially, the legislation aims to prevent state and local governments from restricting the acceptance of cryptocurrencies as a form of payment for legal goods and services.
Should the bill receive approval from Governor Spencer Cox, it is slated to take effect on May 7. Governor Cox has previously demonstrated support for cryptocurrency initiatives, having established a Blockchain and Digital Innovation Task Force in 2022. The continued interest in cryptocurrency investment tracks with broader discussions around strategic reserves and proactive governmental strategies in evolving digital asset landscapes.
