The Utah House Economic Development Committee passed HB 230, enabling state investment of public funds into cryptocurrency. The bill advances to the House for further approval.
Role of the State Treasurer
With the approved bill, the Utah State Treasurer is authorized to allocate up to 5% of certain public funds into 'qualifying digital assets'. These include cryptocurrencies like Bitcoin and approved stablecoins meeting specific criteria. To safeguard these investments, the bill mandates strict encryption measures, such as storing cryptographic keys in geographically diversified, secure data centers.
Utah Bill's Unique Features
What sets Utah's bill apart from similar proposals is the inclusion of crypto mining zoning restrictions. Additionally, the bill emphasizes self-custody of digital assets, ensuring no state authority can limit citizens' rights to self-hosted storage.
Utah Among Other States
Utah's bill comes amid efforts by several other states to introduce similar legislation. Arizona, for example, is considering SB 1025, allowing up to 10% of public funds in Bitcoin and other digital assets. While some states like Oklahoma and New Hampshire push forward, others face challenges, such as Pennsylvania and Ohio.
If passed, HB 230 will make Utah one of the first states officially investing public funds in cryptocurrency, reflecting a national trend towards digital asset integration into the future economy.
