The Utah House Economic Development Committee has approved HB 230, allowing a portion of state funds to be invested in cryptocurrency. The bill now moves to the full House for further approval.
Role of the State Treasurer
Under the new bill, Utah's State Treasurer would have the authority to allocate up to 5% of certain public funds into digital assets, including cryptocurrencies like Bitcoin and approved stablecoins that meet specific criteria. To safeguard these investments, the bill mandates strict encryption requirements, including the storage of cryptographic private keys in geographically diversified, secure data centers.
What Sets the Utah Bill Apart?
Unlike other bills in the United States, Utah's proposal includes provisions for crypto mining zoning restrictions and ensures the right to self-custody digital assets. This means that no state or local government entity can restrict an individual's ability to custody their digital assets using self-hosted or hardware wallets.
Utah Joins Other States
Utah's cryptocurrency bill comes amid various initiatives across the nation. Currently, 12 states have proposed similar legislation, including Arizona and Wyoming. These measures are seen as a way to better prepare states for the future of the financial system.
Successfully passing each approval stage, the bill would position Utah as one of the first states to invest public funds in cryptocurrency, marking a significant step towards financial independence and integration of new digital technologies.
