- Utah proposes a bill to invest up to 10% of state funds in Bitcoin and stablecoins.
- The legislation includes provisions for staking, lending, and protecting self-custody rights.
Utah is proposing a groundbreaking proposal to add cryptocurrency to its state investment approach. The “Blockchain and Digital Innovation Amendments” bill created by state representative Jordan Teuscher gives the state treasurer the power to invest up to 10% of important funds in Bitcoin BTC and stablecoins. However, motivating blockchain adoption remains the main goal of the new regulation.
Key Requirements for Cryptocurrency Investments
The proposal explains precise rules for crypto assets to maintain platform safety. State funds from the Income Tax Budget, Budget Stabilization, and State Disaster Recovery can now be invested in digital assets. Under the proposed allocation, State Budget Reserve Accounts totaling $11.9 billion could generate more than $1 billion worth of cryptocurrency investments.
The government needs to check digital assets against specific criteria before allowing investments. Bitcoin is the leading investment choice because its market capitalization has stood above $500 billion over the past 12 months, reported CNF. Asset managers must adopt strict criteria when investing in stablecoins that demand they hold assets backed by U.S. dollars or safe, liquid assets.
Revenue Generation Through Digital Asset Staking
New rules support digital asset growth even further. The state treasurer can perform stake and loan operations under specified requirements. This helps create more sources of income while maintaining security and adherence to rules.
The law stresses protecting private keys and maintaining effective investment controls. Users must keep private keys in the world’s strongest encrypted servers and access them through end-to-end encrypted systems only. For safety purposes, the hardware holding these keys must reside in different secure data centers separated by substantial distances. Under the Utah proposal the state takes steps to let people control their own digital assets.
The law prevents government branches from blocking access to hardware wallets or self-hosted digital wallet services. The new rules protect personal privacy and financial independence by reinforcing Utah’s supportive stance in the digital currency sector, reported CNF.
Cryptocurrencies as Emerging Public Sector Investments
Utah could officially become the first state to accept cryptocurrencies under this new legislation. The legislation creates a blockchain technology standard that US states might follow in state finance. Through this new law, public agencies will better see digital money as a sound investment choice.
The new budget strategy combines smart money management techniques with thorough evaluation steps to protect investments and open blockchain financial pathways. The regulation supports safe crypto adoption by requiring crypto investments to be transparent per government standards, reported CNF.
Utah is leading the way in modern finance management with its decision to invest public funds into digital currencies. The new legislation makes history by showing both state governments and financial institutions how to handle secure digital assets with investment details under user control. This initiative marks the first time a government has embraced blockchain technology to manage public funds, yet experts cannot predict its future popularity.
