Utah Advances Bill to Allow State Investments in Cryptocurrency

Utah Moves Toward Cryptocurrency Investment

The Utah House Economic Development Committee has advanced a bill that would allow the state to invest a portion of its public funds in cryptocurrency. Known as HB 230 or the Blockchain and Digital Innovation Amendments, the bill passed with an 8-1 vote on January 28.

Key Provisions of the Bill

Introduced by Representative Jordan Teuscher, the legislation would permit Utah’s treasurer to invest up to 5% of specific public funds in "qualifying digital assets." These include cryptocurrencies with a market capitalization exceeding $500 billion and certain stablecoins. The bill also addresses zoning restrictions for crypto mining and ensures state and local governments cannot prohibit the use of cryptocurrencies for legal transactions.

Legislative Progress and Implications

Following committee approval, the bill will proceed to a full House vote. If it passes both the House and Senate, it will go to Governor Spencer Cox for signature. The bill is set to take effect on May 7 if enacted. Governor Cox has previously supported crypto initiatives, including the creation of a Blockchain and Digital Innovation Task Force in 2022.

Utah Joins a National Trend

Utah is part of a growing movement among U.S. states exploring cryptocurrency integration. Twelve states, including Arizona and Wyoming, have introduced similar legislation to allow treasuries to invest in digital assets. South Dakota has also expressed interest, with Representative Logan Manhart announcing plans to introduce a bill for a state Bitcoin reserve.

Investment Management and Security

The bill requires digital assets to be held 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, ensuring Utah’s investments are both secure and strategic.

This legislation reflects a broader shift toward state-level adoption of cryptocurrency, positioning Utah as a leader in blockchain innovation and financial modernization.