Utah proposes law to invest public funds in crypto assets

Utah has introduced a groundbreaking bill that would allow the state treasurer to invest public funds in digital assets, including cryptocurrencies, stablecoins, and NFTs.

The proposed legislation, known as the Blockchain and Digital Innovation Amendments (H.B. 230), was introduced by State Representative Jordan Teuscher.

It aims to create a comprehensive framework for digital asset investment while ensuring regulatory oversight and fiscal responsibility.

The bill permits the state to invest up to 10% of public funds in qualifying digital assets, defined as those with a market capitalisation exceeding $500 billion over the previous 12 months or any stablecoin.

“Utah is proud to lead the way in blockchain and digital innovation,” stated Teuscher, expressing enthusiasm for the initiative.

In addition to investment provisions, the bill includes measures to protect the use of digital assets within Utah.

It prohibits state or local governments from restricting the acceptance of digital assets as payment and bans limitations on self-hosted and hardware wallets.

This proposal aligns with a growing trend among U.S. states exploring cryptocurrency investments.

States such as Wyoming, Massachusetts, Oklahoma, and Texas have also introduced similar legislation aimed at establishing Strategic Bitcoin Reserves.

Dennis Porter, CEO of the Satoshi Action Fund, noted that interest in Strategic Bitcoin Reserve legislation is at an all-time high among state lawmakers.

However, recent reports indicate a decline in the likelihood of President Trump establishing a Bitcoin reserve within his first 100 days in office.

If passed, Utah's legislation would take effect on May 7, 2025, positioning the state as a leader in integrating digital assets into public finance management.