A Utah House committee has given the green light to a bill permitting the state to allocate a portion of public funds into cryptocurrency investments. The legislation, known as HB 230, the Blockchain and Digital Innovation Amendments, now moves to the full House for a vote.

The Utah House Economic Development Committee passed the bill by an 8-1 vote on January 28. Proposed by Representative Jordan Teuscher on January 21, the measure seeks to authorize the state treasurer to invest up to 5% of eligible public funds into “qualifying digital assets.” These assets include cryptocurrencies with a market capitalization exceeding $500 billion, as well as certain stablecoins that meet predefined criteria.

A revised version of the bill was introduced on January 28, incorporating provisions that address zoning restrictions for cryptocurrency mining operations. Should the measure clear the House, it will require Senate approval before reaching the desk of Governor Spencer Cox, who will decide whether to sign it into law.

Utah joins a growing number of U.S. states exploring cryptocurrency investments for public funds. According to Bitcoin Reserve Monitor, twelve states, including Utah’s neighbors Arizona and Wyoming, have introduced similar legislation. If approved, Utah would become one of the first states to formally allow such investments.

The bill outlines stringent security measures for handling digital assets, mandating the use of secure custody solutions, qualified custodians, or exchange-traded products. Additionally, it grants the treasurer the authority to engage in staking and lending activities under specific conditions.

Another key provision of the bill prohibits state and local governments from restricting the acceptance of cryptocurrency as payment for legal goods and services, further signaling Utah’s growing openness to digital assets.

Governor Cox has previously demonstrated support for blockchain and digital innovation, having signed legislation in 2022 to establish a Blockchain and Digital Innovation Task Force. If HB 230 is approved by the legislature and signed into law, it is scheduled to take effect on May 7.

In related developments, South Dakota Representative Logan Manhart has also voiced support for state-level cryptocurrency reserves, announcing his intention to introduce a bill that would establish a strategic Bitcoin reserve for his state. As more states consider cryptocurrency policies, Utah’s decision could serve as a precedent for others exploring digital asset adoption at the government level.