The Utah government has passed a new bill that allows the state treasury to invest in crypto. The bill, known as “Blockchain and Digital Innovation Amendments” (H.B. 230), was introduced by Representative Jordan Teuscher and aims to allocate up to 10% of state funds to select cryptocurrencies and stablecoins.
The bill authorizes the state treasurer to invest public funds in qualifying digital assets that meet specific criteria. It also establishes clear guidelines for how these assets must be stored, managed, and protected to ensure security and prevent mismanagement.
For example, to qualify, a cryptocurrency must maintain a market capitalization of at least $500 billion over 12 months.
The bill establishes regulatory requirements for stablecoin investments, allowing only those fully backed by reserves or issued by regulated entities. Beyond just holding digital assets, the bill allows the state treasurer to engage in staking and lending activities, but only under 14 specific conditions.
Staking would enable the state to earn rewards by participating in blockchain networks, while lending could generate passive income through interest.
However, these activities would be strictly regulated to ensure they are conducted securely, with limits on the types of assets that can be staked or lent, the institutions involved, and the safeguards in place to prevent financial loss.
The proposed law is part of a broader trend among U.S. states exploring the use of blockchain technology for public finance. Wyoming, for example, has introduced a similar bill allowing up to 3% of its state funds to be invested in Bitcoin. Oklahoma has also been considering similar legislation.
If passed, Utah would become one of the first states to officially include digital assets in its financial strategy. This bill will take effect on May 7, 2025.
These recent developments in support of crypto have grown since Donald Trump’s election last year. His stance on the crypto space has shifted significantly over time.
Back in 2019, he was openly critical of Bitcoin and other cryptocurrencies, dismissing them as “not money” and claiming they were based on “thin air.”
However, by 2024, his stance had shifted in a more favorable direction. His campaign started accepting cryptocurrency donations, including Bitcoin, Ethereum, and Solana, signaling his recognition of digital assets as a legitimate form of political contribution.
He has also voiced strong opposition to Central Bank Digital Currencies (CBDCs), arguing that they could be used as tools for government surveillance and financial control. This aligns with the views of many in the crypto community who favour decentralized alternatives.
