State governor Spencer Cox, who appears to be pro-crypto, must now ratify the measure by majority vote in Utah’s House and Senate.
The Utah House committee has approved a bill that would authorize the state to allocate a portion of its public funds to cryptocurrency investments. The measure is now awaiting a vote in the House.
On January 28, the Utah House Economic Development Committee approved HB 230, the Blockchain and Digital Innovation Amendments, with an 8-1 vote.
Representative Jordan Teuscher of Utah offered the legislation on January 21. It would grant the state’s treasurer the authority to allocate up to 5% of specific public funds to the purchase of “qualifying digital assets,” such as those with a market capitalization exceeding $500 billion or approved stablecoins.
On January 28, the second substitute version of the original measure was revised to include provisions for zoning restrictions on crypto mining.
The measure will now proceed to the full House, where it will require majority approval in both the House and the Senate before being presented to the governor for signature or veto.
According to Bitcoin Reserve Monitor, twelve US states, including Arizona and Wyoming, which are neighboring states of Utah, have introduced legislation that authorize their municipal treasuries to acquire cryptocurrencies.
Dennis Porter, the CEO and co-founder of the Satoshi Action Fund, stated on X that Utah is the second state in the United States to advance a bill of this nature out of committee.
“We will be the first to adopt it, despite the fact that Utah is the 11th state to introduce comparable legislation,” Teuscher wrote on X on January 21.
Secure custody solutions, qualified custodians, or exchange-traded products would be the minimum requirements for Utah’s digital assets under the state’s bill. Additionally, it permits the treasurer to participate in the staking and lending of crypto assets under specific circumstances.
The legislation would also prevent state and local governments from limiting the adoption of crypto assets as payment for legal products and services.
If approved, the bill is expected to take effect on May 7, subject to the assent of Utah Governor Spencer Cox.
Cox has signed a bill to establish a Blockchain and Digital Innovation Task Force in 2022, which suggests that he is pro-crypto.
Additionally, Representative Logan Manhart of South Dakota endorses the notion of a state Bitcoin stockpile.
On Jan. 28, he announced on X, “I am honored to announce that I will be introducing a bill in the South Dakota House that would establish a strategic Bitcoin reserve.”
“This is one of the few opportunities for the government to be proactive,” he stated.
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