A Utah House committee has approved a bill that would permit the state to allocate public funds toward cryptocurrency investments. The legislation now moves to the House for a full vote.
Key Details of the Crypto Investment Bill
On January 28, the Utah House Economic Development Committee voted 8-1 to pass HB 230, known as the Blockchain and Digital Innovation Amendments. Representative Jordan Teuscher introduced the bill on January 21.
If enacted, the bill would authorize Utah’s state treasurer to invest up to 5% of certain public funds in “qualifying digital assets.” Eligible investments include cryptocurrencies with a market capitalization exceeding $500 billion or approved stablecoins.
A revised version of the bill, updated on January 28, also includes provisions related to crypto mining zoning restrictions.
Next Steps for the Bill
The bill now requires approval from the full Utah House and Senate. If passed, it will be sent to Governor Spencer Cox, who can either sign or veto the measure. Cox has shown support for blockchain technology, having established a Blockchain and Digital Innovation Task Force in 2022. If approved, the law is set to take effect on May 7.
Growing Trend of State Crypto Investments
Utah is among a growing number of states considering cryptocurrency investments. According to Bitcoin Reserve Monitor, 12 US states—including Arizona and Wyoming—have introduced legislation allowing their treasuries to buy digital assets.
Satoshi Action Fund co-founder Dennis Porter noted that Utah is the second state to advance such a bill through a legislative committee. Representative Teuscher emphasized Utah’s leadership in the movement, stating on X, “While Utah is the 11th state to introduce similar legislation, we will be the first to pass it.”
Additional Provisions in the Bill
The bill outlines strict custody requirements for the state’s digital assets, mandating storage through secure custody solutions, qualified custodians, or exchange-traded products. It also grants the treasurer permission to engage in staking and lending under specific conditions.
Additionally, the legislation prevents state and local governments from restricting cryptocurrency payments for legal goods and services.
Meanwhile, South Dakota Representative Logan Manhart has expressed support for state-level crypto investments. He announced plans to introduce a bill in the South Dakota House to establish a strategic Bitcoin reserve, stating, “Now is one of the few chances government has at being proactive.”
