The Utah House Economic Development Committee has approved HB 230, a bill focusing on cryptocurrency investments. Following a successful vote, the bill is now heading to the full House for further consideration.
The Role of the State Treasurer
Under the proposal, Utah’s State Treasurer would be authorized to invest up to 5% of certain public funds into 'qualifying digital assets' such as Bitcoin and approved stablecoins. These assets must possess a market capitalization of over $500 billion or meet stringent criteria for stablecoins. The bill includes provisions for protecting these investments, including storing cryptographic keys in geographically diversified and secure data centers using encrypted channels.
What Sets the Utah Bill Apart?
Utah's bill is distinct from others in the US by including crypto mining zoning restrictions, updated in its second version. Another significant aspect is the self-custody of digital assets, ensuring that no state or local government can restrict individuals from holding digital assets using self-hosted wallets.
Utah Joins Other States
The Utah bill is introduced amid similar measures across the US, allowing state treasuries to invest in cryptocurrencies. As of now, 12 states have proposed such legislation, with Utah's neighbors like Arizona and Wyoming also leading the move. HB 230 advances amid rising interest in digital assets in the US and underscores the state's endeavor to secure financial sovereignty.
Following its approval by Utah's Economic Development Committee, HB 230 proceeds to the full House for debate. If passed, it will move to the State Senate and finally to the governor for approval. A successful passage would make Utah one of the first states to officially invest public funds in cryptocurrencies.
