Will Utah soon invest in cryptocurrency?

SALT LAKE CITY — A bill that would allow the Utah state treasurer to invest public money in cryptocurrency has cleared its first hurdle on Capitol Hill.

The House Economic Development and Workforce Services Committee voted 8-1 Tuesday to advance HB230. The bill, sponsored by Rep. Jordan Teuscher, R-South Jordan, moves to the full House of Representatives for a vote.

The bill would allow the Utah state treasurer’s office to invest up to 5% of certain public funds in “qualifying digital assets,” which have a market cap of $500 billion or more. Currently, bitcoin is the only currency meeting that standard.

“It gives some flexibility for the state treasurer,” Teuscher told the House committee. “It doesn’t require any investment but allows for that investment.”

Public funds eligible for investment in cryptocurrency include four reserve accounts, commonly referred to as “rainy day funds.”

State Treasurer Marlo Oaks, who attended Tuesday’s committee hearing, said the state has about $1.4 billion in reserve funds. That means up to $70 million of that could be invested in cryptocurrency.

“I support exploration of emerging financial technologies including blockchain and digital assets as a means to enhance Utah’s economy and maintain our state’s position in technological advancement,” Oaks said.

Asked about the risks of cryptocurrency – which can be notoriously volatile – Oaks said his office is “committed to a thorough evaluation process to ensure that any decisions prioritize the safety of public funds and maintain taxpayers’ trust in our financial management.”

During the hearing, many crypto advocates and members of the public expressed support for the bill, although one person urged caution when dealing with public money.

The lone lawmaker to vote against the bill, Rep. Colin Jack, R-St. George, echoed that concern.

“I see the returns that are being done currently in the market, and I understand that,” Jack said, “but I’m still concerned about having state money in that.”

Teuscher noted Arizona recently advanced a similar bill, but he said he hopes Utah will be the first to pass it. If HB230 clears the House of Representatives, it would need to also be passed by the Senate before heading to the governor’s desk.

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