The Utah House Economic Development Committee has passed a bill that could make the state one of the first in the US to invest a portion of public funds in cryptocurrencies.
House Bill 230, the Blockchain and Digital Innovation Amendments, was approved by an 8-1 vote on January 28 and now advances to the full House for consideration.
The proposed legislation, if passed, would permit the state treasurer to allocate up to 5% of certain public funds to “qualifying digital assets,” including cryptocurrencies with a market capitalisation exceeding $500 billion or state-approved stablecoins.
This move comes amid a broader trend of US states embracing digital assets, with Utah positioning itself at the forefront of institutional crypto adoption.
While 12 other states have introduced similar bills, Utah’s initiative could be the first to gain full legislative approval.
Source: Bitcoin Reserve Monitor
The bill has also introduced zoning restrictions for crypto mining operations, reflecting a growing push for regulatory clarity in the sector.
If the measure clears the House and Senate, it will go to Governor Spencer Cox for final approval, with a potential implementation date of May 7.
Utah leads state-level push for crypto investment
Utah’s legislative push to integrate digital assets into public funds reflects the growing recognition of cryptocurrencies as an investment class.
The bill outlines strict custody requirements, mandating that any crypto investments be held through secure custodians, exchange-traded products, or staking mechanisms.
This framework is designed to mitigate risks and ensure transparency in asset management.
The state’s proposed policy also extends beyond investment. The legislation seeks to prevent state and local governments from restricting the acceptance of crypto for legal goods and services.
This provision could accelerate cryptocurrency adoption in Utah’s economy by allowing businesses and institutions to accept digital assets without regulatory barriers.
The move is part of a broader national conversation on the role of digital currencies in mainstream financial systems, with state-level initiatives driving momentum in the absence of clear federal guidelines.
The bill’s rapid progression suggests strong institutional interest in digital asset adoption. Representative Jordan Teuscher, who introduced the legislation on Jan. 21, has been vocal about positioning Utah as a leader in blockchain innovation.
Teuscher highlighted on X (formerly Twitter) that while Utah is the 11th state to propose such legislation, it could be the first to successfully enact it.
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!
Crypto adoption gains momentum across US states
Utah’s legislative efforts align with a growing trend among US states seeking to integrate digital assets into public finance.
Neighboring states such as Arizona and Wyoming have introduced similar initiatives, while South Dakota Representative Logan Manhart recently proposed creating a state Bitcoin reserve.
Manhart’s push for a proactive government approach to Bitcoin investment underscores the shifting perception of crypto as a speculative asset to a strategic financial tool.
The rising interest in crypto investments at the state level comes amid ongoing regulatory debates. The absence of clear federal guidelines on digital assets has led individual states to develop their own policies, resulting in a patchwork of regulations across the country.
Utah’s approach, which includes strict custody rules and investment limits, could serve as a model for other states looking to navigate the evolving digital asset landscape.
Governor Spencer Cox’s stance on blockchain innovation will play a crucial role in determining the bill’s future.
Cox has previously expressed support for digital assets, having signed legislation in 2022 to establish a Blockchain and Digital Innovation Task Force.
If he signs HB 230 into law, Utah could set a precedent for state-level crypto adoption, potentially influencing future legislative efforts across the US.
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