HB0230

This bill introduces comprehensive legislation to support blockchain and digital asset innovation in Utah by establishing clear definitions and regulatory frameworks. The bill defines key terms like "blockchain protocol" and "digital asset" to include various forms of cryptocurrency, non-fungible tokens, and other electronic assets, and provides legal protections for their use. It prohibits state and local governments from restricting individuals' and businesses' ability to accept digital assets as payment, use self-hosted or hardware wallets, and participate in blockchain activities like operating nodes, developing software, transferring assets, and staking. The legislation also exempts certain blockchain-related activities from money transmitter licensing requirements and establishes zoning protections for digital asset mining businesses, specifically preventing local governments from imposing overly restrictive sound regulations or preventing such businesses from operating in industrial zones. By creating a supportive legal environment, the bill aims to encourage technological innovation and provide clarity for businesses and individuals engaging with digital assets. The bill is set to take effect on May 7, 2025, giving stakeholders time to understand and prepare for the new regulations.