H.B. 306, authorizing the state treasurer to issue a competitive procurement for a precious metals-backed electronic payment platform, now awaits Governor Spencer Cox’s signature
SALT LAKE CITY – March 18, 2025 – The Utah Legislature passed H.B. 306, authorizing the state treasurer to issue a competitive procurement for a precious metals-backed electronic payment platform, allowing state vendors to opt for payment in physical gold and silver.
Sponsored by Rep. Ken Ivory and carried in the Senate by Sen. Keith Grover, the bill passed with strong bipartisan support in both the House and Senate and now awaits the governor’s signature. This landmark move positions Utah as the first state in the nation to pass a transactional gold bill.
The legislation is an outcome of the Utah Precious Metals Study Workgroup, formed under H.B. 348 passed by Rep. Ivory in the 2024 General Session, which authorized Utah Treasurer Marlo Oaks to invest a portion of Utah’s rainy day funds in precious metals and review how precious metals can enhance Utah’s economic security and prosperity.
Treasurer Oaks said, “A key takeaway from the workgroup is citizens should have a choice in how they conduct financial transactions. H.B. 306 gives state vendors the option to be paid in precious metals, while ensuring the physical assets backing the system are stored in Utah and subject to regular audits. This not only supports a secure and transparent system, but also takes an important step toward making transactional gold a viable option for all citizens.”
“In uncertain economic times, Utah is providing vendors and service providers with the option to receive payment in gold and silver,” Rep. Ivory said. “This law gives Utahns an alternative to choose how they preserve the purchasing power of their earnings and savings.”
Technological advancements now enable fractional gold transactions. A precious metals-backed electronic payment platform could facilitate real-time transactions, seamless dollar-to-gold conversions, and secure gold storage in Utah under strict safety standards.
Former Federal Reserve Vice Chair Randal Quarles and former CFO of both Citigroup and American Express, Gary Crittenden, are among the workgroup members who expressed support for the legislation. Crittenden said the bill “facilitates the use of the evolving options that are now available in the payment ecosystem.”
Gold served as money in the United States for over a century and a half. However, in 1974, the IRS, through policy, not law, classified gold as a collectible, subjecting it to the highest capital gains tax rate. This tax makes transacting in gold less attractive since each transaction in gold or silver is deemed a taxable event.
Article 1, Section 10 of the U.S. Constitution authorizes states to recognize gold and silver as legal tender. In 2011, Utah became the first state to pass legislation doing just that. State utilization of a precious metals-backed electronic payment platform further strengthens the argument that gold should be treated as money rather than a taxable asset.
Kevin Freeman, CFA, New York Times best-selling author, and founder of Economic War Room, served on the Utah Precious Metals Workgroup. His 2023 book, Pirate Money, outlines a practical roadmap for states to implement transactional gold and silver systems. Freeman said, “H.B. 306 marks a significant step toward reintroducing constitutional money principles rooted in the U.S. Constitution. Utah is showing the nation what’s possible. This isn’t just about gold; it’s about liberty, privacy, and economic justice. I’m proud to see constitutional currency come to life in this historic legislation.”
Utah Speaker of the House Mike Shultz added, “It is important for Utah citizens and businesses to have a variety of options for storing and exchanging the value of their labors, including alternative payment systems and precious metals investments.”
With Governor Cox’s signature, H.B. 306 further positions Utah as a leader in financial innovation and contributes to broader efforts advocating for federal recognition of gold as non-taxable money, positioning gold and silver as a viable payment alternative.
Media Contacts:
Brittany Griffin, Utah Office of State Treasurer
(801) 918-1411
[email protected]
Representative Ken Ivory
(801) 694-8380
[email protected]
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