The post Utah Plans to Invest Public Funds in Crypto With New H.B. 230 Bill appeared first on Coinpedia Fintech News
United States prominent state Utah is taking a big step into the world of digital finance through its new bill, “Blockchain and Digital Innovation Amendments (H.B. 230).” This groundbreaking legislation could soon allow the state treasurer to invest public funds in cryptocurrencies, but only if they meet strict market cap or stablecoin standards.
Utah to Invest 10% of State Accounts in Crypto
This bill was introduced by State Representative Jordan Teuscher, this legislation could position Utah as a trailblazer in state-level cryptocurrency investments. The bill aims to use blockchain technology in the state’s finances, marking a big step toward modernizing its operations.
If the bill is approved, Utah’s State Treasurer could invest up to 10% of key state accounts in digital assets. These accounts include funds meant for disaster recovery, budget reserves, and Medicaid-related expenses.
However, the bill has strict rules about what cryptocurrencies can be chosen. To qualify, the digital assets must have a market value of over $500 billion averaged over 12 months or be stablecoins backed by U.S. dollars or other highly secure assets.
This strict criterion narrows the focus to major players like Bitcoin with a market cap of $2.03 trillion or select stablecoins. Meanwhile, Ethereum seems to be excluded due to its lower market cap of $400 billion.
Ensuring Safety and Security
To ensure the safety of state investments, the bill outlines strong security measures. The cryptographic keys used to access these assets must be stored in highly secure, encrypted systems.
These systems will be located in at least two separate and secure data centers, adding an extra layer of protection against cyber risks.
Moreover, the H.B. 230 bill protects individual rights by preventing state or local governments from restricting people from using self-hosted or hardware wallets to store their digital assets. This ensures that residents maintain full control over their cryptocurrency holdings.
Growing Trend Across the U.S.
Utah is not the only state looking at cryptocurrency. States like Texas, Oklahoma, and New Hampshire are also exploring similar ideas. If H.B. 230 becomes law, it will take effect on May 7, 2025, making Utah one of the first states to invest in cryptocurrencies at the government level.
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.”