Bill HB 230, introduced in Utah, allows for a portion of public funds to be invested in cryptocurrencies such as Bitcoin and approved stablecoins. This move could position Utah as one of the first states to invest public funds into digital assets.
What Does HB 230 Propose?
HB 230 was introduced by Representative Jordan Teuscher on January 21. The bill grants the Utah State Treasurer the authority to allocate up to 5% of certain public funds into 'qualifying digital assets.' These assets must include cryptocurrencies with a market capitalization of over $500 billion or meet stringent requirements for stablecoins.
Role of the State Treasurer and Security Measures
The bill empowers the State Treasurer to invest in digital assets, which may include staking and lending. To safeguard these investments, HB 230 mandates strict encryption measures, such as storing cryptographic keys in geographically diversified and secure data centers, accessible only through end-to-end encrypted channels.
Unique Aspects of the Utah Bill
Utah's bill is distinct in that it includes zoning restrictions for crypto mining, reflecting considerations of blockchain technology's impact on state infrastructure. A key provision of the bill is the right to self-custody digital assets, ensuring no government entity can restrict individuals from using self-hosted or hardware wallets.
HB 230 now moves to the full House for a vote, and if passed, will proceed to the Utah State Senate and then to the governor for final approval. If successful, Utah will become one of the first states to officially invest public funds in cryptocurrencies.
