Utah Bill Advances for State to Purchase Crypto


Utah is set to join 12 US states in getting crypto as an investment. A new bill presented by Jordan Teuscher could allow the state to purchase crypto as an investment. 

The Utah House Economic Development Committee passed HB 230, known as the Blockchain and Digital Innovation Amendments, on January 28 with an 8-1 vote.

Utah Considers Bill to Invest 5% of Public Funds in Crypto

If approved, the state treasury will allocate around 5% of public funds to purchase crypto. Some of the targeted assets are Bitcoins and stablecoins. Utah Governor Spencer Cox would have to sign the bill if it passed in the full House and Senate.

Furthermore, the bill states that the treasury can only purchase crypto assets that meet certain criteria. Some of the considerations include purchasing coins with a market cap of over $500 billion and government-backed stablecoins.

Part of the provisions of the new bill includes allowing the state to use qualified custodians to store its digital investments. Additionally, the bill supports crypto staking and lending. The goal, according to authorities, is to create opportunities that enable Utah to profit from its digital investments. The legislation also prohibits restrictions on using crypto to purchase legal goods and services.

Growing Support for Crypto in the U.S.

Utah is not alone in this move. Twelve U.S. states, including neighboring Arizona and Wyoming, have introduced similar bills allowing their treasuries to purchase crypto.

Meanwhile, support for state-held crypto reserves is growing in other parts of the U.S. A lawmaker in South Dakota recently announced plans to propose a bill to create a Bitcoin reserve.

With Donald Trump back at the White House, several states are considering a Bitcoin reserve as a means to hedge against inflation and diversify their holdings.

Disclaimer

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