Utah House committee approves bill for crypto investment

The Utah House Economic Development Committee advanced a bill that would permit the state to allocate a portion of public funds to cryptocurrency investments. The bill, known as HB 230 or the Blockchain and Digital Innovation Amendments, was passed with an 8-1 vote on January 28.

Introduced by Utah Representative Jordan Teuscher on January 21, the proposed legislation would allow the state’s treasurer to invest up to 5% of specific public funds in "qualifying digital assets." These assets include those with a market capitalization exceeding $500 billion and certain approved stablecoins.

The bill underwent a revision on January 28 to include the second substitute version, which adds provisions for zoning restrictions related to crypto mining. Following the committee’s approval, the bill is set to be voted on by the full House. If it gains majority approval there and in the Senate, it will be presented to Governor Spencer Cox for signature or veto.

Utah is part of a growing trend among US states considering the integration of cryptocurrencies into their financial strategies. According to Bitcoin Reserve Monitor, twelve states, including Utah’s neighbors Arizona and Wyoming, have introduced similar bills to permit local treasuries to purchase cryptocurrencies.

The bill stipulates that any digital assets acquired by Utah must be held through secure custody solutions, qualified custodians, or exchange-traded products. Additionally, it would grant the treasurer the authority to engage in staking and lending of crypto assets under specific conditions and would prevent state and local governments from barring the acceptance of cryptocurrencies as payment for legal goods and services.

If the bill passes all necessary hurdles, it is slated to come into effect on May 7. Governor Cox, who has previously demonstrated 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 movement towards state-level cryptocurrency adoption is not unique to Utah. South Dakota Representative 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.

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