S.B. 298 Programmable Money Amendments

What this bill does

The bill sets rules for programmable money, a digital currency that can be limited in how it is spent. It would bar its use to discriminate based on political opinion, religion, medical history, or lawful firearm ownership, and require an alternative payment method to remain available, with implementation set for 2027.

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Every vote

• 6 yes, 0 no, 2 absentSenate Business and Labor Committee: vote to change the bill · Feb 19, 2026Who voted how
• 5 yes, 1 no, 2 absentSenate Business and Labor Committee: vote to approve it · Feb 19, 2026Who voted how
• 20 yes, 6 no, 3 absentFirst of two Senate votes · Feb 26, 2026Who voted how
• 25 yes, 1 no, 3 absentFinal Senate vote · Feb 27, 2026
• 13 yes, 2 no, 1 absentHouse Business, Labor, and Commerce Committee: vote to approve it · Mar 3, 2026Who voted how
• 48 yes, 11 no, 16 absentFinal House vote · Mar 6, 2026

Hearings and debates

• Feb 19, 2026 Senate Business and Labor Committee▶ Watch
  Transcript (46 turns)

  1. Committee chair1:16:21

     Uh, Senator Stratton, I saw you come in. So we'll go to Senate bill 2 98 programmable money amendments. I noticed that, uh, you do have a, a sub online is will you be speaking to the sub? Yes, I, I would like to do that if I can please. Okay. Thank you. Chair committee.

  2. Sen. Keven J. Stratton1:16:42

     If you're ready, I'll proceed. I just wanna make sure we have, uh, c Catherine Austin Fitz, uh, want to have her join in part of the presentation, but I'll give a Brief. Looks like we do that Way. Thank you. There she is. Good to see you, Catherine. Uh, I'll let her introduce herself as, as she begins. But, so we have this notion of programmable money. And it's interesting, there's so much benefit in this, uh, technologically, uh, advanced society that we live. One of 'em is, is the opportunity to have different forms of currency. We have Utah has, has clarified in statute that, uh, uh, CBDC is not recognized as legal tender money, but programmable fe features are not limited. Government issued money, currency. They can also exist in privately held digital currencies or stable coins. But let me just back up. We all know that if we have a dollar, whether it's cash or are all in the bank, that that, that it's neutral, it's lawfully ours, we can decide how to use it. The rules that govern our behavior come from laws passed and enforce through due process, not from the money itself, but programmable money has unique characteristics in that you can actually put parameters around how that money is spent. This is something that's being used a lot, uh, in some of the foreign countries. I know it's, uh, uh, have, uh, used, uh, to track behavior, uh, and also can disqualify, uh, certain purchases or uses of the money, regardless of, of the legality of it, based upon the preferences of the one that's, that is programming the, the money. What we're trying to do here is not prevent this certainly, uh, this, it's going to come and we look at, uh, look at the, the largest hedge fund advisor has talked about. This is coming and there's, there's good and bad. We're trying to put some guardrails around to make sure that we're not, uh, inappropriately limiting or, uh, uh, distinguishing between all, all of those that use it and make sure we have, uh, an appropriate alternative, those that choose to drop on on this technology. And with that, I'll segue in. I'll, I'd like to turn it over my co-pilot here and, uh, uh, uh, and then if you'll bring it back to me.

  3. Sen. Keven J. Stratton1:19:23

     Chair. Thank you. Yes, please. You may still be on Mute Me. There we go. Well, Let me take it off. Can you hear me now? Yes. Okay. Let's, let's do that.

  4. Catherine Fitts, Investment Banker1:19:47

     Thank you, Senator Stratton. And thank you to the committee for the opportunity to address you. Um, why is this coming up now? Let me give let me just before you start, if you wouldn't mind, uh, give us your name and who you represent. My name is Catherine Alston Fitz. I am the publisher of the Solari Report. I have many decades in experience as an investment banker, uh, both on Wall Street and in the private markets. And I served as Assistant Secretary of Housing in the first Bush administration.

  5. Committee chair1:20:18

     Thank you. Yes. Where do you live?

  6. Catherine Fitts, Investment Banker1:20:22

     I currently, I am speaking to you from Florida. I, um, I'm a resident of the state of Tennessee, and I also spend, uh, approximately six months a year in the Netherlands.

  7. Committee chair1:20:33

     Okay. Thank you. Go ahead.

  8. Catherine Fitts, Investment Banker1:20:35

     Um, again, thank you for the opportunity to address the committee. In 2025, last year, Congress passed the Genius Act, which created a regulatory framework for stable coins, a form of digital money. Once the regulations are in place in late 2026 or early 2027, it is anticipated that stablecoin issuance is expected to grow significantly. Um, currently the digital money market is only, uh, or crypto distributed ledger money is approximately $4 trillion. But as stable coins begin to grow, we could see that grow dramatically. The house has passed an act called the CLARITY Act, which proposes a regulatory framework for digital assets. And the Senate has now responded with a working draft called the Responsible Innovation Act. It is anticipated that this legislation currently in negotiation will pass this coming summer when that is implemented, leaders in the financial markets have proposed that all securities will be traded with digital assets is issued on a distributed ledger. So once the Genius Act and the Clarity Act are both operational, it is likely that this market will go from 4 trillion to significantly into the hundreds of trillions of dollars of digital money issued privately on a distributed ledger. Digital money or assets that are issued on a distributed ledger can be integrated with both governmental or private systems that operate like a social credit system to become programmable money. I would also like to point out, it's important to note that congressional leaders have declined attempts over the last year to outlaw Central Bank digital currency, again, potentially another form of programmable money. Whether programmable money is issued by a central bank or issued as a stable coin or digital asset by private parties, it raises the risk of programmable money being used for surveillance or to compromise the sovereignty of the state. Its financial pools of assets, its enterprises and its citizens. Given this possibility, a prudent man would take steps now to ensure money issued on a distributed ledger can be used to benefit the state and its citizens, but cannot be used to compromise the sovereignty of the state its businesses or its citizens. SB 2 98 sponsored by Senator Stratton, is to design to accomplish this. Again, thank you for the opportunity to address the committee and to Utah's commitment to responsible financial innovation. Thank you. Back to you, Senator Stratton.

  9. Sen. Keven J. Stratton1:23:22

     Thank you Chair. I, I think I'll leave at, at this point to the committee. I would again, uh, like to have the substitute adopted, but I'll, I'll leave it to the committee. I'll Apologize because I thought we were in public comment. That was part of his presentation. My Bad. I'll come back to the committee then

  10. Committee chair1:23:37

      for questions. Senator Musselman y.

  11. Sen. Calvin R. Musselman1:23:38

      Yeah. So, um, this is both you, Senator Stratton and as well as your co-presenter. Um, this is, this is a world that I'm, I'm trying to understand, but as, as far as it, let's just say, um, the, um, Congress decides to make CDB or is it CBDC? Yeah. CDDC, uh, legal tender Central Bank digital currency. Yeah. Central Bank digital currency. If they, let's say they decide that now it is legal tender and we have this law, is there a conflict between their supremacy over currency and what is legal tender and what we would be doing in this bill as far as the guardrails that we'd be putting on it? I guess that's a question for both of you. 'cause this is that, that's the only thing I'm, I think I'm, I'm missing, it seems to me there would be a conflict, but I'm not certain. So

  12. Sen. Keven J. Stratton1:24:35

      Thank you for the question. Let me just, uh, address it then I'll, I'll in invite, uh, Ms. Fitz to do so as well. One of the things, because of this is emerging and one, one reason it's important that we're having these discussions is that signals where we want to be as a state. It's a, it it is correct. We're, we're correct in, in saying that, that there is federal primacy on, on regulation. But if we have, if we have the things that we would like to have in place signaling, that helps form and inform that potential policy, obviously currently it is not recognized as legal tender. As you say, it may, the case may come, but this is, this is an area that we need to signal and weigh in as, as states on, on what we would do if there is a conflict. If that conflict does come, then, then we would have an opportunity at that point to, to amend. However, currently you could, you can see, I, I think, I think, uh, my copilot laid out the timeline very well. And it's important that we at least recognize and have a discussion on what we feel is important as, as, uh, as the legislative body here in this state. How, what would you like to add to that Spitz? Yeah,

  13. Catherine Fitts, Investment Banker1:25:57

      So, so if the central bank issued a central bank digital currency, um, it could easily do so in a way that, um, no one is required to use it. So it wouldn't stop, uh, it shouldn't stop a Utah citizen from using a central bank digital currency. It should stop a situation where they don't have alternatives, particularly if the central bank digital currency, um, has criteria that they're uncomfortable using. So as long as citizens have options, it should not conflict with a central bank digital currency. The place where it would conflict with a central bank digital currency is if that, um, added social criteria that you specifically outlawed in the definition of programmable money. So if the Central bank digital currency tried to free somebody's accounts on the basis of their sex or their, um, their, for example, owning and carrying a firearm, so again, it comes back to, uh, it would, they adopt a social credit system in connection with the central bank digital currency, which violates the provisions in, um, in these amendments.

  14. Sen. Calvin R. Musselman1:27:09

      I, I, I, Mr. Chair, I, one follow up question, I gotta make sure I understand. So, the guardrails in this, is it not redefining c potential federal digital currency as not legal tender in our state? Is that what we'd be saying? And if so, how would the public be able to use it if the federal government decided Congress decided to make it legal tender? Because I, I, I think I heard you say that the public could still use it, but aren't we defining it as a state as not legal tender? Oh, that's a good point. That's a good point. So I, I think, you know, the, the goal of this legislation is to make sure citizens cannot be mandated to use programmable money that would restrict essentially their basic sovereignty and financial freedom. Yeah, I, and I agree with that, but okay. This is more problematic than on the, on the surface, but, okay. Okay. Thank you.

  15. Committee chair1:28:17

      Thank you. Other questions from the committee? Seeing none, um, did you want us

  16. Sen. Keven J. Stratton1:28:24

      to adopt the sub Senator Stratton? Yes, If you would, please.

  17. Committee chair1:28:28

      Um, let's see. Senator Ipson, do you wanna make a motion to I will,

  18. Sen. Don L. Ipson1:28:34

      I make a motion that we delete entitle and body Senate bill 2 98 and replace it with Senate bill 2 98 for substitute.

  19. Committee chair1:28:43

      Okay. That motions appropriate before us. The motion is to, to to, to substitute the bill to substitute one. Any further discussion on that.

  20. Committee chair1:28:51

      Uh, seeing then, Senator Stratton, did you wanna do any additional sum on the, on,

  21. Sen. Keven J. Stratton1:28:57

      just on the substitute motion? Yeah, I, I, I appreciate the, the, the question and, and what the intent of the bill is. It's, the intent of the bill is not to make Central Bank digital currency not available. It's to cons to put restraints around, guardrails around how, what, what, what is there. So that, that, I appreciate the question. Thank you.

  22. Committee chair1:29:21

      Okay. Senator Ipson wa also I waive. Thank you. We'll place the motion. All in favor? The motion to substitute, please say aye. Aye. Any opposed?

  23. Unknown speaker1:29:31speaker not certain

      Say nay. Uh, I'd like to Vote. Aye, Mr. Chair.

  24. Committee chair1:29:37

      Okay. We'll rule that pass unanimous. Uh, six to zero. Okay. Back to the substituted bill. Now, any further discussion here from the committee? Seeing none, is there anyone in the audience who wants to testify on this bill? Anyone online? Seeing none. Well, we have one. Please come forward. Please identify yourself, uh, who you represent off. Anyone.

  25. Julius Hamilton, resident1:30:09

      Hi there, my name is Julius Hamilton. Um, this was a very spontaneous decision. I'm not an expert in this topic. I just thought it was interesting to be able to talk to lawmakers. Um, and I don't know, is it possible for me to just ask like a question about exactly the intention of this law?

  26. Committee chair1:30:25

      Actually, we just take testimony, so you could, you could ask the question, but it'd be kind of rhetorical, but that's fine. And, you know, maybe this senator can answer the question in summation.

  27. Julius Hamilton, resident1:30:36

      Okay. I am personally interested in cryptocurrency. Um, but if I understand correctly, this law is somehow is is it excluding cryptocurrency from the sort of formal definition of money?

  28. Committee chair1:30:52

      He'll answer that in summation. So ask your question and we'll have it on record. And then when he does summation, which later on the process, he can answer that.

  29. Julius Hamilton, resident1:31:01

      Okay. I mean, that, that is my question, essentially. Like, is it, is it trying

  30. Committee chair1:31:05

      To, did you note that Senator Stratton?

  31. Sen. Keven J. Stratton1:31:07speaker not certain

      No, it does not, is the answer.

  32. Committee chair1:31:09

      Okay. All right. Thanks. Okay, here you go. Okay. We do have one other that would like to testify. Please come forward. Good job.

  33. David Liechty, Attorney1:31:23

      Hi, uh, my name's David Lichty. I'm an attorney here in Utah. I am a, I've grown up in from, from Provo live in Bountiful. Right now I'm working with Catherine, um, on, uh, the model legislation with solari, with the programmable money. Specifically to answer your question, currently in, um, in the, in the modified UCC in, uh, Utah, under Utah statutes currently c BDCs are, are prohibited as they're outside of the, the definition of, of, of, of money. We're we're that to, we're that to, um, so this bill expands, um, so that's, those are the government issued cbdc. And this one, this, um, will expand that to cover these privately issued, um, stable coins, um, tokenized deposits, that sort of a thing. And, and realistically, as Catherine's indicated, it's not, this is, um, stable coins. This is coming. It's going to, it's, it's, it's going to be coming. It's, it's, um, it's, it's a matter of putting these guardrails around how it's used. If the, if Congress were to indicate were to create cbdc, that would be, it would, it would preempt as, as the Senator Vickers indicated. Um, however, um, at that point, I think the, the legislature would have to reassess what exactly it means. Um, um, this is a different, this is a different but related, um, issue where it's we're moving towards these, these payment stable coins, these privately issued, um, digital currencies that can be, that can be mod, that can be restricted and, and, uh, programmed. Um, and, and that's, that's all I have to say. I think it, it's, it's a, it's an issue that, that needs to be clearly thought through. Discussed. Uh, how can we both enable the technology to, to make payments faster to, uh, en ensure these cross cross-border payments are made? Um, that how can it increase the, um, the efficacy of, of banking here in Utah and yet still protect individuals' rights to use the currencies they want as they want to, to still have cash, to still use cash, to still use, um, things, uh, to participate in this economy without being, uh, without being, um, restricted in ways that are not legal. That's

  34. Committee chair1:34:01

      Okay. Thank you. Thank you. Okay. We'll come back to the committee for further deliberation or action.

  35. Committee chair1:34:17

      Senator McKay. Sorry.

  36. Sen. Daniel McCay1:34:19

      Yeah. Thank you. I'll make a motion that we pass the bill out with favor. Recommendation

  37. Committee chair1:34:23

      Motion for us is to favor, recommend for substitute Senate Bill 2 98 discussion to that motion. Seeing none. Uh, Senator Stratton, would you like some

  38. Sen. Keven J. Stratton1:34:35

      Thank you chair? I, I do appreciate the motion. I, I would appreciate a positive response to the motion. I do wanna say that we need to be very intentional here. Recognize that, uh, there's, uh, this is a, a, it's like planting a brand new peach tree, and it needs to be trimmed and pruned and, and cared for. But, uh, we needed, this is a key space that we began to engage in the, in the conversation, work with our financial institutions. We have which one Utah has ha has a strong, strong banking and financial institution in the, in the free market. We, we continue to work with them as well as, uh, uh, make, make the, the changes that are needed. But I think it's in a good place right now. And so I'd appreciate the chance to continue the discussion. Thank you.

  39. Committee chair1:35:27

      Thank you. Senator McKay, I'll waive you. Waive We will please the motion, then. All, all in favor. The motion to favor recommend, please say aye. Aye. Aye. Senator.

  40. Committee chair1:35:40

      Senator Weiler, did you wanna vote on that motion?

  41. Sen. Todd Weiler1:35:47

      Yes, I vote. Aye. I'm sorry. I, uh, my coverage blinked out for a second.

  42. Committee chair1:35:52

      You're good. Any opposed say nay.

  43. Sen. Stephanie Pitcher1:35:54speaker not certain

      Nay. I'm sorry. But only legislators vote.

  44. Committee chair1:36:00

      And we'll put rule that pass unanimous. Six to zero. Oh, I

  45. Unknown speaker1:36:03speaker not certain

      Was, thank you. Oh, I'm sorry. I'm sorry.

  46. Committee chair1:36:06

      I'll rule that passes as five to one. We'll, Senator Pitcher as a No, thank you. A you Okay.

• Feb 26, 2026 Senate floor debate▶ Watch
  Transcript (9 turns)

  1. Unknown speaker19:07speaker not certain

     Thank you. We have line a second substitute. My motion is to replace for substitute in title and body with second substitute

  2. Presiding officer19:19

     That motion's in order. Do you wanna explain the changes in the substitute that

  3. Sen. Keven J. Stratton19:23

     Yes, I, I will. In, in the underlying bill we have, we're dealing with what is referred to as programmable money. And, uh, for example, if you have a dollar today, whether it's in cash or your wallet or money or bank account, that dollar is neutral. You can spend it as you wish. Programmable money is a different, it is a digital money that can be designed to follow building instructions. Uh, those instructions can limit how it's used and, and enable surveillance and transactions so forth. For example, the money could be coded so it can only be spent on certain categories of goods or, uh, at certain locations. This is an emerging area and, and what the substitute does, uh, we, in the underlying there was, there was criminal penalties if, uh, for, for and some real teeth there. And also, uh, it, the bill would take effect, uh, the, the normal cadence of bills that are passed this year. What this substitute does is it takes the teeth out and extends the implementation date for a year. So we have an opportunity to continue to work on this and, and, and allow it to get in place. The reason important we put the stake in the ground now is we want to have some, some banks, some, some guide guidance and direction and reflection of what we value here as a, as a state, uh, uh, that we're not going to allow discrimination or, or seclusion based on a policy or a desire. And number one. Number two, that if you're going to use programmable money, you also have to have an option to use non programmable money in, in, in your area. So that's the substitute in its context in the bill as well. Thank

  4. Presiding officer21:21

     You. So we have a motion to substitute. Do we have discussion on that motion? Say none. I'll place the motion. All in favor say aye. Aye. Any opposed? I'll rule The motion passes. So, thank you. Senator Stratton.

  5. Sen. Keven J. Stratton21:38

     Thank you. I will, uh, yield to questions or a motion.

  6. Presiding officer21:44

     Thank you. Looking for questions. Say now. I'll go to you for a motion.

  7. Sen. Keven J. Stratton21:50

     Thank you. I'll waive summation and, and move that third substitute SB 2 98. Second substitute. Thank you. 2 98 Program of money amendments. Be read for the third time.

  8. Presiding officer22:01

     Thank you. And the question is, shall second substitute Senate bill 2 98? Be read A third time roll call

  9. Unknown speaker22:06speaker not certain

     Vote. Senator Baldy Aye. Lewin Rammer bus. Aye. Fillmore as Camilla Fillmore Grover Harper a. Kinins Aye. Ipson Aye. Johnson Aye. Juab McKay. Aye. Mikel Milner Musselman Owens pitcher Plum Rebi Sandal Stevenson Aye. Stratton Stratton. Yes. Vickers. Aye. Weiler Aye. Wilson. Aye. Winterton Aye. President Adams Aye. Second substitute Senate Bill 2 98, having received 20 a votes, six nay votes, three being absent shall be read a third time.

• Feb 27, 2026 Senate floor debate▶ Watch
  Transcript (6 turns)

  1. Sen. Keven J. Stratton16:28

     Thank you Mr. President. This is a bill. We had a good discussion last night, but what we're dealing with is programmable money is, is, is a resource that can be used and programmed according to spending. And the challenge in this space, it's new and emerging issue that we have that's going to really heat up over the next 18 to 24 months. We want to get out ahead of this and establish the values that we place that we're not going to use this for. Uh, we're not gonna use this as leverage for ideologies or, or, or, or, uh, political, uh, efforts and, and preferences. But it, what the bill does is it, it is, it, it states, if you're going to use that, you have to be able to use an alternative as well so that you can, you can, uh, transact, transact the businesses and, and the issues that are needed as, as desired in the traditional way. With that, be glad to answer any questions.

  2. President Adams (presiding)17:30

     Thank you for the presentation, not seeing any questions. I'm gonna go to you for a motion.

  3. Unknown speaker17:35speaker not certain

     Thank you. I'll waive an A move that this, uh, s second SB 2 98 be passed.

  4. President Adams (presiding)17:43

     Thank you. And the question is shall first substitute sec shall second substitute Senate Bill two ninety eight pass. Roll call vote.

  5. Senate clerk17:52

     Senator Vickers Baldry Lewin Brammer Bus Cullimore Escamia Fillmore Aye. Grover Harper Kins Ipson Johnson Wan McKay Mikel Aye. Milner Musselman Owens Pitcher Hilum Rebi Sandal Stevenson Stevenson Stratton Vicar Weiler Wilson Winterton.

  6. President Adams (presiding)18:49

     President Adams Aye. Second substitute Senate Bill 2 98, having received 25 yay votes, one nay vote, three being absent, passes his body and will be sent to the house for their consideration.

• Mar 3, 2026 House Business, Labor, and Commerce Committee▶ Watch
  Transcript (30 turns)

  1. Committee chair (presiding)1:09:32

     We're, we're, uh, we are going to go to, uh, agenda item number four, uh, on the agenda. Uh, Senator Stratton SB 2 98 Programmable Money Amendments. And, uh, we're not, and, uh, we will not be doing, uh, agenda item number three, Senate bill 2 97 today. Yep. It's been moved to, moved to tomorrow's agenda. Okay. Uh, all right. And, uh, and a reminder, we're gonna try and keep it moving. We still have a couple more bills, and we'd like to be done by four o'clock if possible. So let's keep our comments concise and, and, and on point. Go ahead, Senator.

  2. Sen. Keven J. Stratton1:10:22

     Thank you, chair and committee. I appreciate the chance to be here. I this robust vetting. Thank you for all you're doing. Several, as I walked up, I says, good luck. Good luck, good luck. So, but I, I appreciate, Appreciate that. This, this is a major committee. Okay, so this, This is, yeah, I, I was, uh, The inside joke that just won't die Grateful, grateful to be here. Programmable money amendments. Uh, we a few years, uh, two or three years ago, there's a lot of discussion on CBDC, central Bank digital currency and, and the good and, and the challenges that that can present, uh, pro programmable money is the, the, the counterpart in the private sector. This is an area that's really emerging. Uh, and, and coming forward, this, the, the, I bring this bill, uh, to the legislature at this point because of that, that technology that is really on our doorstep. I, we, the bill itself has a implementation date, not in 2026, but 2027 to allow some tempering in us to work on this to make sure that we, uh, land where we want to. But it's important at this point that we get a stake in the ground and, and, and recognize the values. In essence, pro programmable money is, uh, different than, uh, what, what what we refer to now as, as an actual dollar that we would have in the bank in our wallet. Uh, we can spend that any way you want. The notion of programmable money is that you can pro program how it is spent, and so therefore you can control what could or could not be purchased with it. And, uh, what we're doing here in this legislation is seeking to place Utah values in this space, what we value, uh, and, uh, ensure that there's an alternative. I'm grateful for, for a good copilot here. I'm gonna let him introduce himself and, and, uh, explain a little bit more. But then, then chair, if you'll let me, uh, come back and then, then we will open it up, if that's okay. That'd be okay. We don't have a sub or anything. Okay, good. Go ahead and introduce yourself, by the way, chair. Yes. You know who the house sponsor is of this bill? I, I figured that out earlier. We haven't talked about that. Is that okay? I hope it is. I don't know. I just realized we've been so busy dealing with so many good house bills in the Senate that we're just trying to get things that, that's just fine. Thank, thank you. That's a lot of confidence and trust here, so, thank you. Go ahead.

  3. David Liechty, attorney, Solari Inc.1:13:05

     Thank you. My name's David Lichty. I am an attorney. I live here in Utah. I am a, uh, a financial, uh, banking compliance background multiple years back in New York City, but I was born in, in Provo. I live in Bountiful now. Um, I am working with Solari Incorporated, which is an organization out of Tennessee. This we've, uh, solari has, uh, put together model legislation for this programmable money, um, issue, which is, uh, kind of at the forefront right now. Nationwide, uh, as, as a senator has indicated, uh, programmable money is a, it's a rapidly emerging technology in the financial world. Uh, it's, uh, money that comes with built in rules. Traditional money is neutral. It exists, is in cash and banking deposits, um, as banking deposits, as entries on a digital ledger. Uh, the, the rules surrounding the use of traditional money are found in the payment systems, uh, such as debit cards, online networks, uh, gift cards, that sort of thing. Venmo, um, the, the money needs an external third party system to direct it. The programmable money in it, in it itself is, is, is a digital money where the unit of value actually is programmable. Uh, it includes cryptocurrencies, central bank, digital currencies, payment, stable coins. Um, it's the, the, the big issue that with the, these, um, are the units of value, uh, as they can be programmed directly, for instance, to work only in certain places for certain to buy only certain items or to stop certain times to expire. The, um, there's an example of this with circle. Uh, so the, the, the, the national government, uh, passed the Genius Act this past summer, which creates this a, a framework for stable payment, stable coins, which are a type of programmable currency. Circle is, uh, circle technologies is, is has one of the, has the largest payment stable coin by, by, uh, um, by far by it, it's called USDC up until November. It was programmed such that you could not buy firearms with it at all, legally, illegally at all. So, uh, in, in November, they capitulated and changed that made it so that you can purchase firearms legally. But this is a sort of example that, that these, this programmable money can, can, uh, can be used. Um, the, the, the bill itself, it, it, it doesn't stifle innovation. It doesn't outlaw outlaw programmable money. It doesn't, um, it, it simply puts boundaries around it. Um, it, it, um, modifies, it, it it modifies the definition of money, which is already has in the, in the Commercial Code of Utah. It already ex central Bank digital currencies that are already excluded. This also excludes other forms of programmable money. Um, it describes the unlawful acts and practices with regard to programmable money makes it unlawful to require the use of programmable money without giving a non-digital alternative, um, free of charge. It, it makes it unlawful to deny a transaction on the, on a list of enumerated factors, including sex, race, ethnicity, political opinion, re, religion, medical history, purchase or browsing history, these sorts of things that, that are often used that we've seen in other countries get used in as, as social credit, social scores. Um, and Utah, with this bill, we're trying to get ahead of that to sort of put in place, um, guidelines that indicate what is and is not acceptable. The urgency of this is with the Genus Act and with the Senate Clarity Act, uh, moving into digital asset space. Um, these, the dis the, um, the adoption and normalization of these programmable payment, uh, type, uh, programmable mu forms of payment will just increase. Um, and, and if, if we wait until programmable money is deeply embedded in commerce, it could come much harder to establish these guardrails. Uh, we have an opportunity to act now, and, um, I, there Utah, we can welcome innovation without surrendering our fundamental freedoms and protections. Thank you.

  4. Sen. Keven J. Stratton1:17:57

     Thank you. So in, in summation, the guardrails that we're putting around the pro programmable money, it shows that it's used, uh, in Utah. Those, if it's used in Utah, cannot carry embedded conditions that restrict lawful practices, discriminate among users or impose transaction level controls outside of duly enacted law, unless a neutral, lawful alternative form of payment remains available to, so, so individuals can retain meaningful choice in how they participate in commerce in the free market. So with that, uh, chair, we glad to yield.

  5. Committee chair (presiding)1:18:36

     Alright. Thank, thank you very much. We'll, uh, we'll take it to the committee for any clarifying questions. Does not appear there are any, I guess it's clear. Oh, nevermind. There are a couple coming in late. All right. Representative Burton.

  6. Rep. Burton1:18:51

     Thanks, Mr. Chair. Just, uh, I'm curious, uh, and I'm sure there's an easy answer, but it's interesting in the bill, you, you talk about farming and manufactured homes. Why specifically those industries? I'm just curious, Do you wanna start with That?

  7. David Liechty, attorney, Solari Inc.1:19:08

     Sure, sure. The, um, it, it essentially any type of agriculture, any type of, of, um, it, these are things, uh, that have, have, we've seen in other jurisdictions that have kind of have come under, under, under, under contra, under scrutiny. Um, the potential for that, uh, the potential for where a person lives, what they, what they do for, for their business, um, what their, what their employment is, um, is those are the, those are the specific reasons that I, as I understand it, you, could you point me? Go

  8. Rep. Burton1:19:51

     Ahead. Okay. In fairness, that's in current code, but it just seemed interesting. It was associated with the bill here. Sorry. Thank you. What line is that on? Can you tell me? 4 92, is that 4 92? Yeah, it's in here several times.

  9. David Liechty, attorney, Solari Inc.1:20:11

     So, um, if it's, so the, the, the, actually, actually the language of the, that we've introduced that this is, has, that, that Senator, Senator Stratton's introduced actually only start starts, um, other than certain in insertions. It starts on 8 74, line 8 74. Um, the other insertions, the other, the remaining language is, is language in the code. And, and unless it's specifically in what we've, um, that, that would be a question for those that have introduced it in the past. I'm not certain that manufactured homes is specifically specified in the portion that,

  10. Rep. Burton1:20:51

      Yeah, I, I stated it's in current code, but it just seemed interesting. The two are mixed in there. So thanks for the answer. Thank

  11. David Liechty, attorney, Solari Inc.1:20:57

      You. Sure. That's, that's just the commercial code.

  12. Committee chair (presiding)1:21:01

      Okay. Uh, Representative Ivory.

  13. Rep. Ken Ivory1:21:03

      Thank you, Mr. Chair. So the, the Fed now that was announced what year and a half, two years ago, does that fit into this? And, and how and where has that progressed? What's happening with that?

  14. David Liechty, attorney, Solari Inc.1:21:15

      So, my understanding of the Fed Now system is, is simply, it's a, it's a quicker means of transacting with current traditional money. So it's, it's just a faster network to, um, make the exchanges happen between your bank account and mine rather than creating, uh, and as far as I understand, and, and I, I, my understanding is that it does not have a component, a tokenized deposit token, a a deposit. Essentially you can make a digital representation of your, of your banking deposits. JP Morgan has a JPMs coin that is, that allows it to be used as a programmable money. My understanding is the Fed now does not have that, but it's simply a quicker way of transacting money, um, with the underlying, with your underlying US dollars that are digital currency in your bank account.

  15. Rep. Ken Ivory1:22:17

      Okay. Thank you.

  16. Committee chair (presiding)1:22:18

      Um, we'll take it to the, um, for public comment. Is anybody here that would like to speak to this bill? Okay. We don't have any online either. We will, uh, take it to the committee for further action. Representative Thurston,

  17. Rep. Norman K. Thurston1:22:35

      Thank you. I, I actually have another question if we can go for it. Yeah. So I'm trying to understand, so this is a digital currency, so in the realm of Bitcoin type things, but that the issuer of the currency has the ability to place contractual restrictions on its use, is, am I understanding that correctly?

  18. David Liechty, attorney, Solari Inc.1:22:55

      Correct. Bitcoin can also, Bitcoin is a sort of, uh, the, the difference. So bet Bitcoin and Ether are two different ways, different paradigms to look at Bitcoin. The majority of the rules are embedded in the actual code that's shared across the entire network. Um, in order to change that, there are few things that users can, can, um, I just, I'm just looking for real simple answer. I'm trying. So, so, well, that's like, that's the problem. So, so this is a digital currency mm-hmm. Where the issuer of the currency is embedding restrictions on how it's used. Is that right? That's, that's correct. Okay.

  19. Rep. Norman K. Thurston1:23:37

      So, and is anybody doing this today? Is this, does this type of thing actually exists in the world? Is is a unicorn or is it something we've actually seen Senator,

  20. David Liechty, attorney, Solari Inc.1:23:46

      It's in, thank you for the question. It's anticipated within the next, uh, many months, it'll be, be available. And what, again, what we're trying to do is place some guardrails around it.

  21. Rep. Norman K. Thurston1:23:59

      You can see where, I can see where you're headed with this. I'm just, I'm just wondering why anybody would ever use that when there are alternatives that don't have restrictions. Why would, like, it's like me. If I, if I had a credit card, but I got charged 1% every time I used it, I wouldn't use that credit card. I would use someone a different one. Right? Well, The one where they're giving you lots of flights, line miles or whatever.

  22. David Liechty, attorney, Solari Inc.1:24:18

      Yes. But yeah, the, uh, the, the, no, the notion is that, and again, that's why we postponed the implementation to 2027. This, you have some federal, uh, federal acts, the, the Genius Act, the Clarity Act that are working their way through as they work through, that's gonna put in place then the opportunity to move forward. But in it, it, it's, it's part of being, uh, proactive rather, rather than reactive. In, in what we're doing. It's a, it's a notion of let's establish as, as you look a again, as you look online, 8 75, part of what we're trying to do is certainly programmable money is allowed, but transactions for, for transactions, except you're offering a non-digital trade free of charge. So that means that we're, we're going to not limit art artificially in the private sector artificially according to, to, uh, a value system. That, that we have listed 8 81 through following, uh, uh, uh, those, those things have traditionally not taken place with, with, uh, our mode of, of payment and, and receipt.

  23. Rep. Norman K. Thurston1:25:45

      Okay. Thank you. Mr, can I, may I add That, that that's, I think that answers my question.

  24. Unknown speaker1:25:49speaker not certain

      Yeah. I think, uh, just anticipate, I think you, they said that there was a crypto or a circle, a pro money that circled that had already did that with restricting purchasing firearms. It, so I think it has happened. I think that's what you're gonna say, right? Yeah. Yeah. Okay.

  25. Committee chair (presiding)1:26:03

      Mr. Chair, if it's okay, we have our treasure here that Kept coming if that, I'm sorry. We're we have one more Bill go. We're done at four. Okay. If, um, if, um, so we're, we're gonna move. We got it. We got you though. We love our treasure. Yeah, he's awesome. All right. We're gonna go to, uh, chair Maloy.

  26. Rep. A. Cory Maloy1:26:23

      Thank you, Mr. Vice Chair. Uh, I'd like to make a motion that we pass with the favorable recommendation SB 2 98, second substitute programmable money amendments. Would like to speak to That Sounds like a good bill.

  27. Committee chair (presiding)1:26:36

      All right. And for to committee discussion, uh, I don't see any lights, so we're going to go to the sponsor. Thank

  28. Sen. Keven J. Stratton1:26:45

      You for the consideration. I'll waive Okay. Uh,

  29. Committee chair (presiding)1:26:47

      then to the maker of the motion, I'll waive. All right. So the motion is that we pass out favorably SB 2 98, second substitute. I'll in favor say aye. Aye. Aye. And those against? No. If, who are the nos? We got Representative Matthews and Representative Thurston. Were there any other nos? Okay. All right. Just checking.

  30. Committee chair (presiding)1:27:11

      All right. Um, thank you, Senator. Thank you. And now we're gonna go into, go to agenda item number two, SB 2 86,

• Mar 6, 2026 House floor debate▶ Watch
  Transcript (6 turns)

  1. Speaker (presiding)1:23:44

     the Senate third reading calendar, Second substitute Senate bill 2 98 Programmable Money Amendments by Senator Stratton. This bill was heard in business and Labor with a vote of 13 2 1. The house sponsors Representative Kyle. Representative Kyle.

  2. Rep. Jason B. Kyle1:24:03

     Thank you Mr. Speaker. The this bill establishes, uh, guardrails for programmable money that, uh, may contain built-in rules restricting how it may be used. So, uh, a couple years ago, my, my good friend from Utah County and our, our current congressman, uh, uh, who was former, our former Senator Kennedy, he, uh, they, uh, clarified that CBDC is not recognized as currency in our state. Uh, this bill ensures that money in our, uh, digital, digital assets or digital currency, uh, in our state, cannot be used to discriminate based on political opinions, religious beliefs, medical history, lawful or lawful ownership of a firearm. It prevents an issuer from using ESG standards and diversity programming, uh, compliance as a basis for failing or restricting a transaction. And, uh, this has been worked on with, with our, our, uh, our state auditor who, or our state treasurer, excuse me, Marlo Oaks who supports it. Thank you.

  3. Speaker (presiding)1:25:04

     Thank you, Representative Kyle. Discussion to the bill. See none. Back to your f same Kyle for summation, I waive summation has been waived and may I be open on second substitute? SB 2 98. Seen all present, having voted voting is now closed. Second substitute SB 2 98 passes this body with 48 yes votes. 11 no votes will be sent to the Senate. Uh, signed by speaker sent to the Senate for the signature of the President.

  4. Speaker (presiding)1:25:44

     Let's go to representative STE e Listen,

  5. Rep. Stewart E. Barlow1:25:47

     Uh, thank you Mr. Speaker. Motion to encircle SB 2 2 6, fatal motor Vehicle accidents.

  6. Speaker (presiding)1:25:53

     Thank you, representative. That motion is an order. Will go ahead and place the motion. The motion before the house is that we, uh, unc second substitute SB 2 26.