Utah's bill allowing public funds to be invested in cryptocurrency was approved by the House Economic Development Committee.
Role of the State Treasurer
The bill grants the Utah State Treasurer the authority to allocate up to 5% of certain public funds into cryptocurrencies like Bitcoin and approved stablecoins, provided they meet specific criteria. The Treasurer is permitted to engage in activities like staking and lending these assets under certain conditions. The bill mandates strict encryption requirements to protect these investments, requiring the storage of cryptographic keys in secure, geographically dispersed data centers.
What Sets the Utah Bill Apart
Utah's bill stands out among similar initiatives in the U.S. due to its provisions on crypto mining zoning and individual rights to self-custody of digital assets. The bill ensures that no state or local entity can restrict individuals from managing their digital assets using self-hosted or hardware wallets.
Utah Joins Other States
The Utah bill emerges amid similar efforts in other states such as Arizona and Wyoming, with a total of 12 states introducing bills to allow public funds to invest in digital assets. If passed through all legislative stages, Utah would be among the first states to officially invest public funds in cryptocurrency.
Utah's bill to incorporate cryptocurrency into public investments reflects a growing trend across the U.S. toward integrating digital assets into state economies. Following its review by the full House, it will move on for approval by the Senate and the governor.
