Utah Takes Bold Step Allowing Bitcoin Investments in Public Funds

• Utah’s new bill allows up to 10% of state funds to be invested in Bitcoin, emphasizing innovation and regulatory compliance.
• The legislation sets a national precedent with staking and lending provisions, showcasing bold steps toward broader crypto adoption.
• States like Wyoming and Pennsylvania join Utah in exploring Bitcoin investments, reflecting rising institutional interest in digital assets.

Utah has introduced a bill, “Blockchain and Digital Innovation Amendments” (H.B. 230). The proposed legislation permits the state treasurer to invest public funds in digital assets such as Bitcoin. Moreover, it outlines a robust framework incorporating staking, lending, and self-custody provisions. 

Representative Jordan Teuscher is the bill’s sponsor. It permits the allocation of up to 10% of state account funds to digital assets. These accounts consist of the Disaster Recovery Restricted Accounts, Medicaid Growth Reduction, and the General Fund Budget Reserve. The measure emphasizes regulatory compliance in addition to encouraging innovation. A digital asset must meet strict stablecoin requirements or sustain a $500 billion market value in order to be eligible.

Staking, Lending, and Strategic Bitcoin Reserves

In addition to the investment, Utah’s bill empowers the state to engage in staking and lending under specific conditions. This provision sets a precedent for broader crypto adoption in public fund management. Similarly, Wyoming’s recently introduced “State Funds-Investment in Bitcoin” legislation enables Bitcoin allocation in its permanent funds. However, Wyoming limits Bitcoin investment to 3% of each fund’s value.

Other states, such as Pennsylvania, Texas, and New Hampshire, have also introduced Strategic Bitcoin Reserve bills. Consequently, this national trend demonstrates growing institutional interest in Bitcoin. Wyoming Senator Cynthia Lummis praised these efforts as innovative steps toward financial diversification.

The Federal Reserve Debate

Meanwhile, Utah Senator Mike Lee reignited debates on the Federal Reserve’s future. Lee criticized the Fed for contributing to financial instability and proposed a bill to dismantle it. This aligns with long-standing criticisms from economists like Murray Rothbard, who attributed inflation to the Fed’s monetary policies. Such debates underscore the shifting dynamics in U.S. financial policy amid rising cryptocurrency adoption.