A Utah House committee has approved HB 230, a bill that would allow the state to invest a portion of public funds in Bitcoin and digital assets. The measure now moves to the full House for consideration.

The Utah House Economic Development Committee passed the bill in an 8-1 vote on January 28th. 

Sponsored by Representative Jordan Teuscher, the bill would grant the state treasurer the authority to allocate up to 5% of certain public funds into "qualifying digital assets," defined as those with a market capitalization above $500 billion or certain state-approved stablecoins.

Additionally, a January 28th update to the bill introduced zoning restrictions for Bitcoin and cryptocurrency mining operations.

To become law, the bill must clear the full House and Senate before reaching Governor Spencer Cox, who can either sign or veto the measure. If enacted, it would take effect on May 7th. 

According to Bitcoin Reserve Monitor, 12 U.S. states, including Arizona and Wyoming, have introduced similar legislation allowing state treasuries to hold Bitcoin and cryptocurrencies.

Dennis Porter, CEO of Satoshi Action Fund, noted that Utah is the second U.S. state to advance a bill of this kind beyond the committee stage.

The bill outlines custody and security protocols, requiring Bitcoin and digital assets to be stored through regulated custodians, secure custody solutions, or exchange-traded products. 

It also permits the state treasurer to engage in staking and lending under specified conditions. 

Additionally, the bill prohibits state and local governments from restricting Bitcoin and cryptocurrency payments for legally permitted goods and services.

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