Utah’s House Economic Development Committee passed the bill for H.B. 230, the Blockchain and Digital Innovation Amendments. Utah’s committee approval of this bill makes it the second US state to consider using digital assets in public finance, reflecting a broader trend.
Representative Jordan Teuscher proposed the bill on January 21st. It authorizes the state treasurer to invest some public funds in qualifying digital assets.
Notably, this legislation lets the government invest up to 5% of certain public funds in digital assets that meet specific requirements. These include a market cap of over $50 billion to reduce risk from volatile assets.
Additionally, the revised bill includes zoning rules for cryptocurrency mining, showing a complete approach to state regulation of digital assets.
Utah’s Bill Current Trajectory
Utah’s committee strongly supports a bill integrating digital assets into the state’s finances, voting 8-1 in favor. It now goes to the full House and Senate for approval before Governor Cox can sign or veto it. If passed, the bill starts May 7, 2025.
Notably, Cox signed a bill creating a Blockchain and Digital Innovation Task Force in 2022, suggesting pro-crypto leanings, according to Cointelegraph.
The proposed legislation concerns investment and outlines a framework for responsible asset management. H.B. 230 mandates that state-held digital assets must be held securely through qualified custodians, secure custody solutions, or exchange-traded products (ETPs).
Furthermore, the bill permits the state treasurer to stake and lend crypto assets, provided specific conditions are met.
Beyond investment, the bill demonstrates a forward-thinking approach to the broader adoption of cryptocurrencies. It explicitly prohibits state and local governments from restricting the acceptance of crypto assets as payment for legal goods and services.
U.S. Financial Companies Join the Trend
Bank of America’s CEO Brian Moynihan recently hinted at a potential embrace of cryptocurrencies. If regulators approve, Moynihan stated that U.S. banks will adopt crypto as a payment option. As of 2023, Bank of America was the second-largest bank in the country, with over $1.62 trillion in assets under management (AUM).
Integrating crypto into payment services will allow banks to offer digital assets like Bitcoin as payment options alongside Apple Pay, Visa, Mastercard, and debit cards.