Enrolled Copy H.B. 230
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Blockchain and Digital Innovation Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jordan D. Teuscher
Senate Sponsor: Kirk A. Cullimore
Cosponsor: Ken Ivory David Shallenberger
Kay J. Christofferson Trevor Lee Troy Shelley
Tyler Clancy Matt MacPherson Lisa Shepherd
Paul A. Cutler Verona Mauga Rex P. Shipp
Jennifer Dailey-Provost Logan J. Monson Andrew Stoddard
Doug Fiefia Jefferson Moss Jason E. Thompson
Stephanie Gricius Angela Romero Raymond P. Ward
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LONG TITLE
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General Description:
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This bill creates authority for the state treasurer to invest public funds in certain digital
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assets.
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Highlighted Provisions:
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This bill:
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▸ defines terms;
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▸ prohibits state and local governmental entities from restricting the acceptance or custody
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of digital assets;
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▸ establishes the right to operate nodes, develop software, transfer digital assets, and
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participate in staking on blockchain protocols;
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▸ creates exemptions from money transmitter licensing requirements for certain blockchain
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and digital asset activities;
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▸ restricts the ability of political subdivisions to impose sound limitations or zoning
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restrictions on digital asset mining businesses in industrial zones; and
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▸ makes technical and conforming changes. H.B. 230 Enrolled Copy
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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ENACTS:
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7-28-101, Utah Code Annotated 1953
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7-28-102, Utah Code Annotated 1953
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7-28-103, Utah Code Annotated 1953
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7-28-104, Utah Code Annotated 1953
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10-9a-541, Utah Code Annotated 1953
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17-27a-536, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 7-28-101 is enacted to read:
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7-28-101 . Definitions.
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As used in this chapter:
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(1) "Blockchain protocol" means any executable software deployed to enable the transfer of
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data and electronic records through a distributed network of nodes, including an
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additional standardized set of rules that uses a previously existing blockchain as a base.
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(2) "Digital asset" means:
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(a) virtual currency;
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(b) cryptocurrency;
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(c) natively electronic assets, including:
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(i) stablecoins; and
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(ii) non-fungible tokens; or
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(d) other digital-only assets that confer economic, proprietary, or access rights or powers.
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(3) "Hardware wallet" means a physical device that:
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(a) is not continuously connected to the Internet;
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(b) allows an individual to secure and transfer digital assets; and
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(c) enables the owner of digital assets to retain independent control over the digital
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assets.
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Section 2. Section 7-28-102 is enacted to read:
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7-28-102 . Permitted uses of digital assets.
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A state or local governmental entity may not prohibit, restrict, or impair a person's
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ability to:
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(1) accept digital assets as a method of payment for legal goods and services; or
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(2) take custody of digital assets using:
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(a) a self-hosted wallet; or
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(b) a hardware wallet.
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Section 3. Section 7-28-103 is enacted to read:
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7-28-103 . Access to blockchain protocols and transfer of digital assets.
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A person may:
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(1) operate a node for the purpose of:
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(a) connecting to a blockchain protocol; and
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(b) participating in the blockchain protocol's operations;
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(2) develop software on a blockchain protocol;
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(3) transfer digital assets to another individual or business utilizing a blockchain protocol; or
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(4) participate in staking on a blockchain protocol.
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Section 4. Section 7-28-104 is enacted to read:
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7-28-104 . Exemption from money transmission license.
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The following activities do not require an individual or business to obtain a money
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transmitter license under Title 7, Chapter 25, Money Transmitter Act:
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(1) operating one or more nodes on a blockchain protocol;
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(2) developing software on a blockchain protocol; or
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(3) operating a business or decentralized protocol that:
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(a) effectuates the exchange of one digital asset for another digital asset; and
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(b) does not exchange digital assets for legal tender or bank deposits.
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Section 5. Section 10-9a-541 is enacted to read:
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10-9a-541 . Digital asset mining -- Zoning restrictions.
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(1) As used in this section:
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(a) "Digital asset" means the same as that term is defined in Section 7-28-101.
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(b) "Digital asset mining" means using computer hardware and software specifically
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designed or utilized for validating data and securing a blockchain network.
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(c) "Digital asset mining business" means a group of computers working at a single site
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that:
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(i) consumes more than one megawatt of energy on an average annual basis; and
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(ii) operates for the purpose of generating blockchain tokens by securing a
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blockchain network.
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(2) A political subdivision of the state may not enact an ordinance, resolution, or rule that:
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(a) for digital asset mining businesses located in areas zoned for industrial use, imposes
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sound restrictions on digital asset mining businesses that are more stringent than the
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generally applicable limits set for industrial-zoned areas; or
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(b) prevents a digital asset mining business from operating in an area zoned for
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industrial use if the digital asset mining business meets other requirements for
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industrial use.
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Section 6. Section 17-27a-536 is enacted to read:
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17-27a-536 . Digital asset mining -- Zoning restrictions.
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(1) As used in this section:
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(a) "Digital asset" means the same as that term is defined in Section 7-28-101.
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(b) "Digital asset mining" means using computer hardware and software specifically
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designed or utilized for validating data and securing a blockchain network.
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(c) "Digital asset mining business" means a group of computers working at a single site
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that:
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(i) consumes more than one megawatt of energy on an average annual basis; and
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(ii) operates for the purpose of generating blockchain tokens by securing a
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blockchain network.
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(2) A political subdivision of the state may not enact an ordinance, resolution, or rule that:
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(a) for digital asset mining businesses located in areas zoned for industrial use, imposes
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sound restrictions on digital asset mining businesses that are more stringent than the
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generally applicable limits set for industrial-zoned areas; or
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(b) prevents a digital asset mining business from operating in an area zoned for
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industrial use if the digital asset mining business meets other requirements for
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industrial use.
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Section 7. Effective Date.
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This bill takes effect on May 7, 2025.
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