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The bill now needs to pass by majority vote in Utah’s House and Senate before being approved by state governor Spencer Cox, who appears to be pro-crypto.
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A Utah House committee has passed a bill that would allow the state to invest a portion of public funds into crypto, with the measure now heading to the House for a vote.
The Utah House Economic Development Committee passed HB 230, the Blockchain and Digital Innovation Amendments, by an 8-1 vote on Jan. 28.
Utah Representative Jordan Teuscher proposed the bill on Jan. 21. It would give the state’s treasurer authority to allocate up to 5% of certain public funds to buy “qualifying digital assets,” such as those with a market capitalization over $500 billion or approved stablecoins.
The second substitute version of the original bill was updated on Jan. 28 with provisions for crypto mining zoning restrictions.
The bill will now head to the full House, where it will need majority approval both there and in the Senate before it is given to the governor to sign or veto.
Twelve US states — including Utah’s neighboring states of Arizona and Wyoming — have introduced bills giving their local treasuries permission to buy cryptocurrencies, according to Bitcoin Reserve Monitor.
US SBR status by state. Source: Bitcoin Reserve Monitor
Satoshi Action Fund co-founder and CEO Dennis Porter said on X that Utah is the second US state to pass a similar bill out of committee.
“While Utah is the 11th state to introduce similar legislation, we will be the first to pass it,” Teuscher posted to X on Jan. 21.
Source: Jordan Teuscher
Utah’s bill would require the state’s digital assets to be held either through secure custody solutions, qualified custodians, or exchange-traded products. It also allows the treasurer to engage in staking and lending of crypto assets under specific conditions.
The legislation would also prohibit state and local governments from restricting the acceptance of crypto assets as payment for legal goods and services.
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The bill, which needs approval from Utah Governor Spencer Cox, is scheduled to take effect on May 7 if passed.
Cox appears to be pro-crypto, having signed a bill to create a Blockchain and Digital Innovation Task Force in 2022.
Meanwhile, South Dakota Representative Logan Manhart also supports the concept of a state Bitcoin stockpile.
“I am proud to say I will be bringing a bill in the South Dakota House that would create a strategic Bitcoin reserve,” he posted to X on Jan. 28.
“Now is one of the few chances government has at being proactive,” he said.
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This article first appeared at Cointelegraph.com News
