Utah is getting ready to make a big move with the introduction of the “Blockchain and Digital Innovation Amendments (H.B. 230).” The bill, sponsored by State Representative Jordan Teuscher, will allow the state to invest up to 10% of public funds in bitcoin and other “qualified digital assets”.
“This bill reflects our commitment to embracing cutting-edge technology and preparing for the future of finance while ensuring fiscal sovereignty,” Teuscher tweeted.
The bill updates the state’s financial plan by adding digital assets like bitcoin to government investments. If passed, Utah will be the latest U.S. state to look into digital asset investments to bolster their financial systems.
The bill allows the State Treasurer to invest public funds from key state accounts including the Disaster Recovery Fund, Budget Reserves, Medicaid funds and other important accounts, but with rules to ensure safety and minimize risk.
Only digital assets that meet the following criteria would be eligible:
- A market cap of $500 billion or more over 12 months.
- U.S. backed stablecoins that are collateralized by dollars or other high quality assets.
Bitcoin, with a market cap of over $2 trillion, is the only decentralized digital asset that qualifies.
To protect these investments, the bill requires strict security measures. Cryptographic keys to access the assets must be stored in encrypted environments at two geographically diverse and secure data centers. This is to minimize the risk of cyber attacks or unauthorized access.
Utah’s bill also protects individual rights. Utahns will be able to self custody their digital assets with hardware wallets or other tools without government interference.
No state or local government entity shall prohibit, restrict or impair a person’s ability to use self hosted or hardware wallets, the bill states. So residents will have full control over their digital assets.
This bill means more states now see bitcoin as a hedge against inflation and market volatility and as a store of value. Teuscher thinks this will make the state’s financial position stronger during economic downturns like natural disasters or recessions.
“Utah is proud to lead the way in blockchain and digital innovation,” Teuscher said during the bill’s introduction.
Utah isn’t the first state to look into bitcoin investments at the state level. Other states, including Texas, Oklahoma, New Hampshire, and North Dakota have proposed similar bills.
Texas is looking to allocate budget surpluses to bitcoin and accept bitcoin donations.
If H.B. 230 passes, Utah will be the 11th state embrace Bitcoin. Utah’s bill comes at a time when national interest in Bitcoin is growing.
Trump’s call for a “Strategic Bitcoin Reserve” and to decentralize savings means bitcoin is becoming a bigger part of government plans. Advocates say it can increase transparency, reduce inefficiencies and create a stronger financial framework.
The bill has people talking about Bitcoin’s future. Some think measures like this could lead to more adoption and higher prices.
