New Hampshire Becomes First U.S. State to Establish Bitcoin Reserve
New Hampshire has made history by becoming the first U.S. state to establish a formal Bitcoin reserve, following the enactment of House Bill 302. This forward-thinking legislation, signed into law by Governor Kelly Ayotte on 6th May, authorises the state to invest its treasury funds in Bitcoin (BTC) and precious metals.
New Legislative Framework
The newly passed law stipulates that the state can allocate up to 5% of its public funds towards cryptocurrency investments, specifically targeting digital assets with a market capitalisation exceeding US$500 billion (approximately AU$768 billion). In practice, this means only Bitcoin qualifies for the reserve, making New Hampshire a trailblazer in state-backed cryptocurrency initiatives.
Governor Ayotte expressed her enthusiasm for the legislative move via a post on social media platform X (formerly Twitter), proclaiming it a significant step towards modernising state investments in digital assets and precious metals. She highlighted that New Hampshire is leading the charge in the evolving landscape of commerce and financial innovation.
Regulatory Safeguards
In a bid to ensure accountability and security, the law mandates that any cryptocurrency holdings must be maintained by a qualified custodian or as part of a regulated investment product, thereby aiming to mitigate risks associated with the volatile nature of cryptocurrencies.
Contrasting Federal Stance
This initiative stands in stark contrast to the current federal approach towards digital currencies. While former President Donald Trump’s administration did not impose a specific cap on state investments, it did prohibit the federal government from acquiring new assets for its reserves. This divergence showcases New Hampshire’s commitment to adopting a more progressive stance towards cryptocurrency despite broader federal reluctance.
Broader Context of State Legislation
The passage of HB 302 highlights New Hampshire’s ambition to position itself at the forefront of innovation in the realm of digital assets. In contrast, other states have struggled to make similar advancements. Arizona had previously passed a similar bill, only for it to be vetoed by Governor Katie Hobbs. Additionally, several states—including Oklahoma, South Dakota, Montana, North Dakota, Pennsylvania, and Wyoming—have either abandoned or postponed efforts to explore Bitcoin investment. Just recently, Florida opted to withdraw proposed legislation that would have permitted such investments.
In this context, North Carolina remains an active candidate with ongoing proposals aimed at exploring cryptocurrency infrastructure backed by legislative leaders.
Federal Trends and Legislative Movements
Alongside state initiatives, there are parallel developments at the federal level. In March, Trump’s executive order set forth plans to establish a “Digital Asset Stockpile” and a “Strategic Bitcoin Reserve.” This initiative aligns with the BITCOIN Act sponsored by Senator Cynthia Lummis, aimed at enabling the government to amass substantial Bitcoin reserves through civil and criminal forfeitures. The bill is currently under review by the Senate Banking Committee.
Conclusion
With the introduction of HB 302, New Hampshire has emerged as a pioneer in the cryptocurrency landscape, demonstrating a proactive approach towards the growing digital asset market. This historic move may inspire other states to reconsider their positions on cryptocurrency investments, potentially reshaping the future of state treasury management amid an evolving financial ecosystem. As the conversation around digital assets continues to develop, New Hampshire’s decision may serve as a pivotal moment in the adoption of cryptocurrencies within public funds across the United States.
