All, two questions:

1. Can I assign the Utility Belt to a bystander token?
2. If the token it is assigned to is merged into a stack, does the stack now have use of the utility belt?

Thanks in advance for your time!

1. Yes. Bystander tokens are character and as far as I know there is nothing prohibiting them from being assigned a resource. Unless the resource itself does.

2. Yes.

Rulebook pg 22: