A Utah House committee has approved legislation that allows the state to designate a fraction of public funds for cryptocurrency investments. The bill, titled HB 230, passed the Utah House Economic Development Committee on January 28 with an 8-1 vote and will now proceed to the full House for further consideration.

Proposed by Representative Jordan Teuscher on January 21, the bill grants the state treasurer the power to invest up to 5% of chosen public funds into ‘qualifying digital assets.’

Restrictions on Crypto Investments

Eligible investments include cryptocurrencies with a market cap exceeding $500 billion, along with some stablecoins. A revised version of the bill, introduced on January 28, also incorporates zoning regulations for crypto mining operations.

If the bill is passed by both the House and Senate, it will require approval from Governor Spencer Cox before becoming law, with an effective date set for May 7. Governor Cox has previously expressed support for blockchain initiatives, having established the Blockchain and Digital Innovation Task Force in 2022.

Utah is joining a growing number of states considering similar cryptocurrency policies. At least 12 US states, including nearby Arizona and Wyoming, have introduced legislation allowing state treasuries to hold crypto assets.

Dennis Porter, CEO and co-founder of Satoshi Action Fund, pointed out that Utah is the second state to advance such legislation out of committee. Teuscher shared his optimism on social media, indicating that while Utah is the 11th state to propose such a bill, it aims to be the first to implement it.

“MASSIVE BREAKING: With a super majority vote, Utah becomes the 2nd state in the nation to pass a ‘Strategic Bitcoin Reserve’ bill out of committee.”
— Dennis Porter (@Dennis_Porter_) on Twitter, January 28, 2025.

Under the proposed law, the state’s cryptocurrency holdings must be managed via secure custody solutions, qualified custodians, or exchange-traded products. The legislation also permits the treasurer to engage in staking and lending practices under specific conditions, while preventing state and local governments from prohibiting the use of crypto assets in legal transactions.

Growing Momentum for State Crypto Reserves

Utah’s initiative is part of a broader trend as various states consider similar approaches. On January 28, South Dakota’s Logan Manhart announced plans for a bill to create a strategic Bitcoin reserve for his state. In December, Giovanni Capriglione from Texas introduced the Texas Strategic Bitcoin Reserve Act, proposing to hold Bitcoin as a reserve asset for at least five years. Mike Cabell of Pennsylvania suggested allowing his state’s treasury to allocate up to 10% of its balance sheet in Bitcoin, citing its potential as an economic hedge.