A Utah House committee has approved a bill that would permit the state to invest a portion of public funds in cryptocurrency, advancing the measure to the full House for a vote.
Dennis Porter, co-founder and CEO of Satoshi Action Fund, noted on X that Utah is the second U.S. state to advance such a bill past committee approval.
On Jan. 28, the Utah House Economic Development Committee passed HB 230, the Blockchain and Digital Innovation Amendments, with an 8-1 vote.
Introduced by Representative Jordan Teuscher on Jan. 21, the bill would authorize the state treasurer to allocate up to 5% of select public funds into “qualifying digital assets”, including cryptocurrencies with a market capitalization exceeding $500 billion and certain approved stablecoins.
A revised version of the bill, known as the second substitute, was updated on Jan. 28 to include provisions regarding crypto mining zoning restrictions.
The measure now moves to the full House, where it must secure majority approval before advancing to the Senate. If passed, both chambers will send it to the governor for approval or veto.
Utah advances legislation to allow state investment in cryptocurrencies
According to Bitcoin Reserve Monitor, several U.S. states have introduced legislation allowing local treasuries to invest in cryptocurrencies.
“While Utah is the 11th state to introduce similar legislation, we will be the first to pass it,” Teuscher posted on X on Jan. 21.
Under Utah’s bill, the state’s digital assets would be required to be held through secure custody solutions, qualified custodians, or exchange-traded products.
In addition to that, the bill also establishes the Treasurer of the State as the custodian of digital assets and allows the state to stake and lend crypto assets subject to certain conditions.
Furthermore, the legislation prohibits state and local governments from regulating or restricting the use of cryptocurrency to pay for lawful goods and services.
Upon receiving the governor’s approval, the law will become effective on May 7, 2024. Spencer Cox has shown some pro-crypto stance in the past, having signed a bill creating a Blockchain and Digital Innovation Task Force in 2022.
South Dakota joins growing state-led push for a Bitcoin reserve
Nations worldwide are increasingly considering adopting a strategic Bitcoin reserve, driven in part by U.S. President Donald Trump’s pro-crypto stance. In recent months, multiple U.S. states have introduced and passed Bitcoin-related legislation.
A few hours ago, South Dakota joined the movement, unveiling its own Bitcoin proposal. In a recent post on X, South Dakota State Representative Logan Manhart expressed his intent to introduce a strategic Bitcoin reserve, calling it a rare opportunity for the state to take a proactive approach.
He said he was proud to introduce a bill in the South Dakota House that would create a strategic Bitcoin reserve. He noted that now is one of the few chances the government has to be proactive.
These developments highlight a growing trend among U.S. states, with at least 12 states having already proposed or passed Bitcoin-related legislation. These include Utah, South Dakota, Florida, New Hampshire, Pennsylvania, Ohio, North Dakota, Oklahoma, Texas, Wyoming, Massachusetts, and Arizona.
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