A new bill introduced in the Utah House of Representatives is taking a significant step toward embracing the world of crypto assets. The latest proposal marks Utah as the second U.S. state to pass such legislation through a committee.
The proposed bill, recently passed by a key House committee, would enable state treasurers to invest a portion of public funds in qualifying digital assets, including bitcoin (BTC) and other widely traded crypto assets. It would also set requirements for asset custody, management, and compliance.
A $50 Billion Market Cap Asset
According to the proposed bill, treasurers could allocate funds to eligible digital assets with a market cap of over $50 billion, with a limit of 5% of the total funds in each account.
The proposal would also empower the Utah State Treasurer’s office to make decisions regarding crypto acquisitions, with oversight provided by the state’s Division of Finance, which could then be held as a long-term investment or used in various state operations.
If passed, Utah would join a growing list of U.S. states exploring ways to integrate crypto assets into their portfolios. The move could have a wider-reaching effect, potentially setting an example for other states to adopt similar approaches by purchasing crypto assets or developing regulatory frameworks to encourage crypto innovation.
Growing Acceptance of Crypto Assets
Several states have been actively involved in the crypto business in recent months. For instance, Arizona lawmakers have taken a significant step toward investing in bitcoin. The state recently approved a new bill, SB 1025, with a 5-2 vote, making Arizona the first in the United States to take advantage of this opportunity. The bill allows the state to purchase up to 10% of its public funds in crypto assets like BTC.
Senators Wendy Rogers and Jeff Weninger co-sponsored the bill. It proposes establishing a long-term Bitcoin reserve with plans to hold the crypto for at least 20 years unless it’s required to assist in settling federal debt. The initiative could position Arizona as a progressive player in the crypto industry, potentially drawing in more businesses and investors.
