Utah’s H.B 230 Bill Proposes Crypto Investments with Public Funds – Will It Work?

Utah is taking a major step into digital finance with its Blockchain and Digital Innovation Amendments (H.B. 230). This new bill could allow the state treasurer to invest public funds in cryptocurrencies—but only under strict guidelines. If passed, it would position Utah as a leader in government-level cryptocurrency investments.

Utah to Invest 10% of State Accounts in Crypto

Introduced by State Representative Jordan Teuscher, the bill aims to integrate blockchain technology into Utah’s financial system. It proposes allowing the State Treasurer to invest up to 10% of key state funds—such as disaster recovery, budget reserves, and Medicaid expenses—into digital assets.

Strict Rules for Eligible Cryptocurrencies

The bill includes clear rules for selecting cryptocurrencies. To qualify, a digital asset must either:

• Maintain a market cap of over $500 billion, averaged over 12 months, or
• Be a stablecoin backed by U.S. dollars or other highly secure assets.

This means only major players like Bitcoin, which has a market cap of $2.03 trillion, would qualify. Ethereum, with a market cap of $400 billion, falls short of the requirement.

Ensuring Safety and Security

To ensure funds are safe, the bill outlines rigorous security protocols. The cryptographic keys used to access digital assets must be stored in encrypted systems at two separate and secure data centers. These measures add multiple layers of protection against cyber threats.

H.B. 230 also defends individual rights by prohibiting state or local governments from restricting people from using self-hosted or hardware wallets to store their digital assets. This guarantees Utah residents full control over their cryptocurrency holdings.

Utah Joins the Crypto Race

Utah isn’t alone in exploring government-level cryptocurrency investments. States like Texas, Oklahoma, and New Hampshire are considering similar legislation. If H.B. 230 is approved, it will go into effect on May 7, 2025, making Utah a pioneer in adopting cryptocurrencies for state-level investments.

However, US Attorney Jordan Teuscher said “This bill shows our dedication to using new technology and preparing for the future of finance while keeping control of our resources.”

This legislation may cement Utah’s reputation as a forward-thinking hub for blockchain innovation.