Utah Proposes Legislation Allowing State Treasurer to Invest in Digital Assets
Utah has introduced landmark legislation aimed at modernizing state investments by permitting the state treasurer to allocate public funds into digital assets.
The proposed “Blockchain and Digital Innovation Amendments” bill (H.B. 230), introduced by State Representative Jordan Teuscher, seeks to position Utah at the forefront of blockchain adoption while maintaining stringent fiscal oversight.
Proposed Bill Sets Framework for Digital Asset Investments
The bill establishes a framework for investments in digital assets, incorporating provisions for staking, lending, and safeguarding self-custody rights.
“This bill reflects our commitment to embracing cutting-edge technology and preparing for the future of finance while ensuring fiscal sovereignty,” Teuscher stated on X.
Under the legislation, up to 10% of funds from several state accounts, including the State Disaster Recovery Restricted Account and the General Fund Budget Reserve Account, could be invested in digital assets.
Eligible assets must meet rigorous criteria, such as a market capitalization exceeding $500 billion over 12 months or strict stablecoin requirements, including backing by high-quality liquid assets and regulatory approval.
Thank you, @martypartymusic, for highlighting our efforts! Utah is proud to lead the way in blockchain and digital innovation. This bill reflects our commitment to embracing cutting-edge technology and preparing for the future of finance, while ensuring fiscal sovereignty. https://t.co/4WsPkiBnk0
— Jordan Teuscher (@jordanteuscher) January 21, 2025
The bill outlines robust security measures to protect state-managed digital assets. Private cryptographic keys must be stored in encrypted environments, accessible only through end-to-end encrypted channels, and safeguarded in geographically diverse secure data centers.
These provisions reflect the state’s commitment to ensuring the integrity and safety of its digital investments.
Additionally, the legislation affirms individual rights to self-custody, barring state or local governments from restricting the use of self-hosted or hardware wallets. This move underscores Utah’s support for decentralized financial autonomy.
Utah’s initiative follows a growing trend among states exploring digital asset investments. Other states, including Oklahoma, New Hampshire, and Texas, have proposed similar measures, often with varying technical and regulatory approaches.
While some have focused on strategic Bitcoin reserves, others, such as Pennsylvania and Ohio, have faced legislative roadblocks.
If passed, Utah’s legislation would take effect on May 7, 2025, making it the eleventh state to pursue digital asset investment policies.
New Hampshire and North Dakota Latest U.S. States to Propose Bitcoin Reserves
New Hampshire and North Dakota have introduced legislation to establish strategic Bitcoin reserves, marking a growing trend among U.S. states to diversify their treasuries with cryptocurrency.
Previously, Ohio proposed adding Bitcoin to its treasury reserves, following the introduction of a new bill by House Republican leader Derek Merrin.
Likewise, on 12 December 2024, Texas Representative Giovanni Capriglione introduced the Texas Strategic Bitcoin Reserve Act, which proposes that the state comptroller hold Bitcoin as a reserve asset for at least five years.
Pennsylvania took a similar step in November, with Representative Mike Cabell proposing a bill to allow its treasury to allocate up to 10% of its balance sheet in Bitcoin, citing the asset’s potential to hedge against economic uncertainty.
Furthermore, corporate Bitcoin holders like MicroStrategy and Metaplanet have expanded their Bitcoin holdings.
Source: cryptonews.com
