Utah has introduced an innovative bill to modernize state investments by permitting the treasurer to invest public funds in digital assets.
The “Blockchain and Digital Innovation Amendments” (H.B. 230), presented by State Representative Jordan Teuscher, aims to position Utah as a leader in blockchain adoption while maintaining strict fiscal accountability.
The bill establishes a thorough framework for digital asset investments, including staking, lending, and safeguarding self-custody rights.
“This bill reflects our commitment to embracing cutting-edge technology and preparing for the future of finance while ensuring fiscal sovereignty,”
The legislation permits up to 10% of certain state funds, including those from disaster recovery and budget reserves, to be allocated to digital assets. To qualify, assets must either have a market capitalization exceeding $500 billion within the past year or meet stablecoin criteria, such as regulatory approval and backing by high-quality liquid assets. It includes strict security measures for managing these assets, requiring encrypted storage of private keys and ensuring access through secure channels at geographically diverse data centres. Additionally, it protects individuals’ rights to self-custody, allowing the use of self-hosted and hardware wallets, reflecting Utah’s commitment to decentralized financial autonomy.
Utah’s initiative aligns with a growing trend of states exploring digital asset investments, signalling a broader shift towards integrating blockchain technology into public finance. Texas Senator Charles Schwertner recently introduced Senate Bill 778 (SB 778) to create a Strategic Bitcoin Reserve, aiming to position the state as a leader in financial innovation. If passed, Texas would become the first state to acquire and hold Bitcoin as an economic asset. Schwertner emphasized Bitcoin’s decentralized structure and limited supply, which could protect the state against inflation and economic instability. The proposed reserve would be a special fund outside the state’s general revenue fund, boosting Texas’ financial resilience and digital economy.
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