SB 298: Utah Prohibits ESG-Based Transaction Denials by the Issuers of "Programmable Money"
Summary
SB 298 was enacted in March 2026 and becomes effective on May 5, 2027. The law amends Utah's commercial law to regulate "programmable money" (digital or electronic money that can embed conditions on how it is used) by excluding it from the Uniform Commercial Code's standard definition of money and bars entities from requiring its use unless a free non-digital alternative is also offered. The law also prohibits payment issuers from denying or restricting transactions based on protected characteristics or lawful conduct, including political views, religious beliefs, medical history, firearm ownership, or compliance with ESG standards. Finally, the law requires issuers to provide a detailed written explanation within 30 days upon request for any denied transaction or terminated service, establishes violations as Class A misdemeanors with fines up to $10,000 per violation, allows civil remedies including punitive damages or revocation of business authority, and clarifies that cryptocurrency transactions themselves remain lawful.
