A bill that would allow Utah’s state treasurer to invest public funds in digital assets, including Bitcoin and stablecoins, has taken a step forward in the legislative process. 

House Bill 230 (HB 230), known as the Blockchain and Digital Innovation Amendments, has received a favorable recommendation from the Revenue and Taxation Committee and is now headed for a second reading in the Utah State Senate.

Sponsored by Representative Jordan D. Teuscher and Senator Kirk A. Cullimore, the bill seeks to authorize the state treasurer to allocate a portion of public funds into qualifying digital assets, establishing guidelines for custody, staking, and lending of these assets. 

The bill defines “digital assets” to include cryptocurrencies, stablecoins, and other blockchain-based tokens, and sets regulatory requirements for their investment.

If passed, the state treasurer would be permitted to invest up to 5% of specific public funds—such as the General Fund Budget Reserve Account and the State Disaster Recovery Restricted Account—into digital assets, provided they meet strict security and custody requirements. These assets would need to be held through a secure custody solution, a qualified custodian, or an exchange-traded product issued by a registered investment company.

HB 230 also proposes that Utah’s treasurer be allowed to stake digital assets—a process that helps validate blockchain transactions in exchange for rewards—as long as the state maintains full ownership. Additionally, the bill permits lending digital assets, provided the transactions do not expose the state to heightened financial risk.

Beyond state investments, the legislation includes provisions supporting individual and business access to blockchain technology. 

It prohibits local governments from banning or restricting the use of digital assets for payments and ensures that individuals can self-custody their digital assets using personal wallets. The bill also prevents local governments from imposing zoning restrictions on digital asset mining operations in areas zoned for industrial use.

The bill is part of Utah’s broader push to integrate blockchain technology into its financial and regulatory framework. It follows exploratory efforts by state officials to assess blockchain-based financial strategies and aligns with ongoing discussions about how governments can leverage digital assets for financial innovation.