Utah House Economic Development Committee Passes Bill Allowing the State to Invest in Cryptocurrencies

The bill, HB 230, passed with an 8-1 vote on January 28 and now heads to the full House for a vote.

Investors are eagerly awaiting the outcome of the FOMC meeting, which is putting pressure on the crypto market today. Around this bearish call, Trump’s Bitcoin Strategy is picking pace with 13 US states planning to create a Bitcoin Strategic Reserve, out of which Arizona and Utah are leading the race. Meanwhile, Bitcoin is riding above the $100K mark with a slight decline today; it is currently trading at $102,684.

Utah’s House Economic Development Committee has passed a bill that will allow the state to invest in cryptocurrencies. The bill, HB 230, passed with an 8-1 vote on January 28 and will now head to the full House for a vote. If it is approved by both the House and Senate, it will be sent to Governor Spencer Cox, who is known for his pro-crypto stance.

Key Details of the Bill

Dennis Porter, the CEO & Co-Founder of SatoshiActFund, announced on Twitter that the Utah House Committee had approved the “Blockchain and Digital Innovation Bill,” which includes a provision for adopting Bitcoin as a strategic reserve asset. Porter highlighted that the support for the bill was “overwhelming,” indicating strong backing for crypto adoption at the state level.

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!

The bill, introduced by Representative Jordan Teuscher, gives Utah’s treasurer the authority to invest up to 5% of certain public funds in “qualifying digital assets.” These assets include major cryptocurrencies with a market capitalization of over $500 billion and approved stablecoins. The bill also allows the state to engage in crypto staking and lending under specific conditions.

The bill mandates that the state’s digital assets be held securely through qualified custodians, exchange-traded products, or secure custody solutions. Additionally, it prohibits state and local governments from restricting the acceptance of cryptocurrencies for legal goods and services. This ensures that crypto can be used for transactions within Utah.

Crypto Initiatives Gaining Momentum

Utah is one of several states that are exploring the use of public funds for crypto investments. Twelve other states, including neighboring Arizona and Wyoming, have introduced similar bills. Utah’s bill is poised to be the first to pass out of committee, and if it becomes law, it will take effect on May 7.

Growing Support for State Crypto Investments

Governor Spencer Cox’s previous support for blockchain initiatives, such as signing a bill to create a Blockchain and Digital Innovation Task Force in 2022, suggests that the bill will likely receive his approval. In related news, other states, such as South Dakota, are also exploring similar measures, with Representative Logan Manhart planning to introduce a bill for a state Bitcoin stockpile. This growing trend reflects increasing state-level support for cryptocurrency adoption and investment.

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