Utah's HB 230, a bill that allows the state to invest a portion of public funds in cryptocurrencies, has passed its first approval stage.
The Role of the State Treasurer
Under the bill, Utah's State Treasurer is authorized to invest in digital assets such as Bitcoin and approved stablecoins. These assets must maintain a market capitalization of over $500 billion or meet specific stablecoin requirements. The bill sets strict encryption requirements for storing cryptographic keys in secure data centers accessible only through encrypted channels.
What Sets the Utah Bill Apart?
Unlike other proposals in the U.S., Utah's bill includes provisions on crypto mining zoning, reflecting the state's concerns about the impact of blockchain technology on its infrastructure. It also emphasizes self-custody of digital assets, ensuring that governmental entities cannot restrict individuals from controlling their assets via self-hosted wallets.
Utah Joins Other States
The Utah bill emerges amidst similar movements in other states, with 12 states proposing legislation to invest public funds in digital assets. For instance, Arizona is advancing SB 1025 to allocate up to 10% of public funds in Bitcoin.
If HB 230 is fully passed, Utah will be among the first states to officially invest public funds in cryptocurrency, potentially setting a precedent for other regions.