Utah lawmakers are considering a new proposal that would allow the creation of a state strategic crypto reserve using public funds.
Utah State Representative Jordan Teuscher, a Republican, has introduced a bill that would allow the state treasurer to invest public funds in digital assets such as Bitcoin (BTC) and stablecoins.
Says Teuscher,
“Utah is proud to be at the forefront of blockchain and digital innovation. This bill reflects our commitment to embracing cutting-edge technology and preparing for the future of the financial sector, while safeguarding tax sovereignty.”
The Blockchain and Digital Innovation Amendments bill (HB 230) “authorizes the state treasurer to invest certain public funds in qualifying digital assets, establishes requirements for the custody and management of digital assets, creates regulatory requirements for stablecoin investments and Authorizes the State Treasurer to participate in the deployment and lending of digital assets under specified conditions.”
The proposed legislation allows for an investment of up to 10% in crypto assets from various state budget accounts, including the State Disaster Recovery Restricted Account, the General Fund Budget Reserve Account, the Income Tax Fund Budget Reserve Account, and the Medicaid Growth Reduction and Budget Stabilization. Bill.
The bill also says the state may only invest in stablecoins or digital assets with a market capitalization averaging more than $500 billion over the past 12 months.
There are also security measures for the crypto custodian service outlined in the bill that require “cryptographic private keys accessible only within an encrypted environment through end-to-end encrypted channels,” prohibit access via a mobile phone, and “hardware that stores cryptographic private keys contains’. in at least two geographically diversified, specially designated secure data centers.”
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