A committee in the Utah House has given the green light to a bill that would allow the investment of state public funds in cryptocurrencies. The next step for this legislation is a full House vote.
Legislative Progress
On January 28, the Utah House Economic Development Committee voted 8 to 1 in favor of HB 230, also known as the Blockchain and Digital Innovation Amendments. This bill, introduced by Representative Jordan Teuscher on January 21, enables the state treasurer to invest up to 5% of certain public funds in “qualifying digital assets.” These qualifying assets include cryptocurrencies with a market capitalization over $500 billion, as well as select stablecoins.
The most recent version of the legislation, updated on January 28, features new regulations addressing zoning for cryptocurrency mining, one of several amendments made to the original proposal.
Next Steps and Support
For the bill to become law, it must secure majority support within the entire House and then move on to the Senate. If it clears those hurdles, it will await the signature or veto from Governor Spencer Cox.
Recent data indicates that Utah is not alone in exploring cryptocurrency investments; twelve other states, including nearby Arizona and Wyoming, have introduced similar initiatives. Dennis Porter, co-founder and CEO of the Satoshi Action Fund, noted on X that Utah has become the second state to see this type of legislation progress through its committee stages.
Regulatory Framework
Teuscher expressed on X his ambition for Utah to be the first state to successfully enact this kind of bill, despite it being the eleventh state to propose such measures.
The proposed legislation mandates that any digital assets held by the state must be securely managed through trusted custodial services, custody solutions, or exchange-traded products. Furthermore, the bill allows the state treasurer to engage in staking and lending of these digital assets, all under a regulated umbrella.
Additionally, the legislation prohibits state and local authorities from imposing any restrictions on using cryptocurrencies for legal transactions involving goods and services.
Should the bill receive the necessary votes, it is set to go into effect on May 7. Governor Spencer Cox has previously shown his support for cryptocurrencies, even establishing a Blockchain and Digital Innovation Task Force back in 2022.
In a related note, South Dakota Representative Logan Manhart has plans to introduce a new bill aimed at creating a Bitcoin strategic reserve. He emphasizes the need for government action during this pivotal moment in the cryptocurrency landscape.
Source: Cointelegraph
