Utah Introduced Bill of Investing Public Funds into Bitcoin
Utah's proposal distinguishes itself through its comprehensive and detailed approach, incorporating novel provisions for staking, lending, and self-custody rights.
The state of Utah has introduced a landmark piece of legislation, H.B. 230, titled “Blockchain and Digital Innovation Amendments,” signifying a proactive embrace of Bitcoin and other digital asset investment in public finance.
Introduced by State Representative Jordan Teuscher, the bill proposes a framework for the state treasurer to allocate up to 10% of certain state accounts into digital assets, a move that positions Utah at the forefront of a rising national trend.
Furthermore, this initiative reflects a broader national interest in exploring the potential of digital assets for public treasury management, following President Donald Trump’s earlier endorsement of a national Bitcoin stockpile.
Utah Bill Target Public Funds for Investment
Utah’s proposal distinguishes itself through its comprehensive and detailed approach, incorporating novel provisions for staking, lending, and self-custody rights, while simultaneously implementing rigorous security protocols.
The bill targets several specific state accounts for potential investment, including the State Disaster Recovery Restricted Account, General Fund Budget Reserve Account, Income Tax Fund Budget Reserve Account, and Medicaid Growth Reduction and Budget Stabilization Account.
However, Central to the bill’s framework are the stringent criteria for qualifying digital assets. To be eligible for investment, an asset must meet either of two conditions: maintain a market capitalization exceeding $500 billion (averaged over a 12-month period), or adhere to strict stablecoin criteria, including backing by US dollars or high-quality liquid assets and regulatory approval from US authorities.
An Unstoppable Trend Wave
If enacted, the Utah legislation would take effect on May 7, 2025, potentially making Utah the eleventh U.S. state to legally pursue such a measure.
Furthermore, the bill explicitly protects individual self-custody rights. It prohibits state and local government entities from restricting or impairing an individual’s ability to hold digital assets in self-hosted or hardware wallets.
Utah’s initiative follows a wave of similar proposals across multiple states, each exhibiting unique approaches to digital asset investment. While Oklahoma and New Hampshire have adopted similar $500 billion market capitalization thresholds, effectively focusing on Bitcoin, Texas has introduced separate Senate and House bills, one allocating up to 1% of budget surpluses and the other solely addressing Bitcoin donations.
Other states, including Pennsylvania, Ohio, and North Dakota, have encountered varying degrees of success, with some proposals stalled due to political changes or remaining in preliminary stages.
