A major government committee moved Utah closer to becoming the top government-backed cryptocurrency investor with its endorsement of a bill to invest public funds in digital assets.
On Tuesday, Jan. 28, the Utah House Committee on Economic Development voted 8-1 in favor of House Bill 230: Strong legislative support expressed via Blockchain and Digital Innovation Amendments in which the state could participate through digital asset investments.
The bill would allow the state treasurer to divert up to 5 percent of public funds to digital assets eligible for investment if a market valuation surpasses $50 billion.
Utah House Committee Emerges as a Leader in State-Backed Crypto Investments
The digital assets bill, by Representative Jordan Teuscher, identifies main regulatory guidelines for the retention, management and compliance of the state’s digital assets. Furthermore, under specific conditions, it also provides opportunities for staking and lending out of the treasury, potentially unlocking new revenue flowing into Utah. He tweeted after the committee gave its approval:
“Thrilled to announce HB230 which will allow the state to invest in digital assets. While Utah is the 11th state to introduce similar legislation, we will be the first to pass it. Utah continues to lead the nation in blockchain and digital innovation.”
The bill will, if passed, be sent to Governor Spencer Cox, who has already shown his openness to Blockchain technology. State lawmakers have previously kept their allegiance to blockchain and digital innovation with the signing of legislation that implemented a blockchain and digital innovation task force.
Thrilled to join with @Dennis_Porter_ to announce HB230 which will allow the state to invest in digital assets. While Utah is the 11th state to introduce similar legislation, we will be the first to pass it. Utah continues to lead the nation in blockchain and digital innovation! https://t.co/mBTt12UaQw
— Jordan Teuscher (@jordanteuscher) January 21, 2025
Arizona, Wyoming, and ten other states have legislation considering similar legislation, but Utah is becoming a frontrunner for blending blockchain into the workaday world of public finance. Satoshi Action Fund chief Dennis Porter praised Utah’s leadership, saying it was only the second U.S. state to move a bill of this kind through the committee stage.
Preventing Government Bans on Crypto Payments
Advertisement Banner
The bill also makes provisions to secure the money and the process. Combined with being able to use the digital version of assets secured by state-regulated custodians, exchange-traded products, or other approved safe storage solutions, the only thing the state can now do is hold its assets in digital format.
It also would also protect the use of cryptocurrency like Bitcoin, barring state and local governments from banning cryptocurrency payments for legally permitted goods and services.
MASSIVE BREAKING: With a super majority vote Utah becomes the 2nd state in the nation to pass a 'Strategic Bitcoin Reserve' bill out of committee.
Thank you to the leadership of @jordanteuscher, @TreasurerOaks, & Senator Cullimore as well as Utah's forward thinking approach. pic.twitter.com/CBSwtHCDxw
— Dennis Porter (@Dennis_Porter_) January 28, 2025
The bill cleared the House committee and represents a big hurdle to be cleared before it can be signed into law, as it still must be approved by the Senate. With the state actively pro-crypto and the governor with a history of supporting blockchain, experts in the industry see Utah leading a new wave of government crypto investments.
And it could be a model for other states looking to introduce blockchain technology into public fiscal systems as the bill progresses. The legislation, if passed, might not only reinforce Utah’s economic position, but make the technology even more appealing and might help to spread the digital assets use across the country.
Conclusion
Utah’s H.B. 230 is a big step toward bringing digital assets onto the books with state investments. Because of Utah’s strong legislative support and a gettable governor, it’s poised to lead the country in blockchain innovation and set a precedent other states will follow.
Stay tuned to The BIT Journal and keep an eye on Crypto’s updates. Follow us on Twitter and LinkedIn, and join our Telegram channel to be instantly informed about breaking news!
FAQs
- What is H.B. 230?
It’s a bill allowing Utah to invest public funds in digital assets like Bitcoin. - How much can be invested?
Up to 5% of funds per account in assets worth over $50 billion. - How will assets be secured?
Through regulated custodians, secure custody solutions, or ETFs. - Will the governor approve it?
Governor Spencer Cox is expected to support the bill.
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
