A Utah House committee has approved a bill that allows the state to invest some public funds in cryptocurrency. This proposal is now moving to the House for a vote.
The Utah House Economic Development Committee passed HB 230, known as the Blockchain and Digital Innovation Amendments, with an 8-1 vote on January 28. Representative Jordan Teuscher introduced this bill on January 21. It gives the state treasurer the power to allocate up to 5% of certain public funds to purchase “qualifying digital assets.” These include assets with a market cap over $500 billion and approved stablecoins.
The bill was updated on January 28 to include rules about zoning for crypto mining. Now, it heads to the full House, where it needs majority support, followed by approval in the Senate, before reaching the governor.
Twelve states in the U.S., including neighboring Arizona and Wyoming, have introduced similar bills allowing local treasuries to buy cryptocurrencies. Dennis Porter, co-founder and CEO of Satoshi Action Fund, noted on X that Utah is the second state to pass such a bill out of committee.
“While Utah is the 11th state to introduce similar legislation, we will be the first to pass it,” Teuscher mentioned on X on January 21. The proposed law requires the state to hold its digital assets through secure custody solutions, qualified custodians, or exchange-traded products. It also allows the treasurer to engage in staking and lending of crypto assets under specific conditions.
Importantly, the legislation prevents state and local governments from restricting the acceptance of crypto assets as payment for legal goods and services. If approved, the bill requires the signature of Governor Spencer Cox and is set to take effect on May 7.
Governor Cox has shown his support for cryptocurrency initiatives. He signed a bill in 2022 to create a Blockchain and Digital Innovation Task Force. Meanwhile, South Dakota Representative Logan Manhart is also backing the idea of a state Bitcoin reserve.
“I’m proud to say I will be bringing a bill in the South Dakota House that would create a strategic Bitcoin reserve,” he shared on X on January 28. “Now is one of the few chances government has at being proactive,” he added.