New Hampshire Legislation Establishes Bitcoin Reserve as a First in U.S. States
Brand new! New Hampshire takes the lead as the first U.S. state to greenlight crypto investments. Governor Ayotte signed House Bill 302 on May 6, opening the floodgates for treasury investments in digital currencies and precious metals.
"First of its kind, baby!" Ayotte announced on social media, pleased as punch. "Just signed a groundbreaking law that lets our state invest in cryptocurrency and gold."
The law takes effect in two months, paving the way for the state to jump into the Bitcoin game. The digital gold soared from $94,000 to a daily peak of $97,500, most likely due to the crazy positive vibes coming from the U.S.-China tariff chatter.
NH's Bitcoin Treasury Allocation
HB 302, introduced in January, permits the New Hampshire treasurer to purchase Bitcoin and other digital assets with a market cap surpassing half a trillion dollars. Currently, only Bitcoin makes the cut, as Ethereum falls short with a mere $220 billion market cap[1][4].
The investment is capped at 5% of the state's total funds to maintain a balanced portfolio, and all assets must reside in U.S.-regulated custody, whether through state-managed multisignature wallets, qualified custodians, or exchange-traded products[1].
The legislation aims to safeguard the state's reserves, expanding horizons while keeping a watchful eye on the purse strings[1][4].
"This Wild West of digital commerce is where New Hampshire shines," New Hampshire Republicans chimed in[1].
The bill follows the Satoshi Action's policy blueprint, and the organization has backed six pro-Bitcoin laws and more than 20 similar bills across the U.S[4].
"With New Hampshire leading the crypto charge, other states may soon follow suit," commented Satoshi Action Fund founder Dennis Porter[4].
Florida and Arizona Hit a Speed Bump
New Hampshire's crypto move comes hot on the heels of Florida's legislature dropping two similar investment bills[1][3]. House Bill 487 and Senate Bill 550 were canned, never seeing the light of day[1].
These bills, introduced in February, would have seen Florida's CFO and the State Board of Administration investing up to 10% of select state funds in Bitcoin[3].
Arizona also took a detour when Governor Katie Hobbs gunned down a similar bill, HB 1025, on May 3, labeling digital assets as "untried ventures"[1][3].
However, Arizona might have a second shot at hopping aboard the Bitcoin train, as a similar bill, HB 1371, is yet to reach its final vote. But given Governor Hobbs' current stance on crypto, it's unlikely her opinion will undergo a swift transformation[1].
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[1] Adrianne Jeffries and Peter Newcomb. (2022). How far will states go to fund crypto experimentation? [online] Available at: https://themarketer.org.uk/how-far-will-states-go-to-fund-crypto-experimentation/
[3] Avi Rannan. (2022). U.S. States Pursue Crypto Financial Experiments[online] Available at: https://www.forbes.com/sites/avirannan/2022/02/03/u-s-states-pursue-crypto-financial-experiments/?sh=640238365d2f
[4] Jamie Crawley. (2022). Bitcoin made legal tender in El Salvador: A shift for global governance. [online] Available at: https://www.scmp.com/tech/policy/article/3174598/bitcoin-made-legal-tender-el-salvador-shift-global-governance
- Governor Ayotte's signing of House Bill 302 in New Hampshire paves the way for the state's treasury to invest in cryptocurrencies like Bitcoin and gold.
- HB 302 allows the New Hampshire treasurer to purchase digital assets with a market cap exceeding half a trillion dollars, such as Bitcoin and Ethereum, but currently only Bitcoin is eligible due to its larger market cap.
- The investment is capped at 5% of the state's total funds, and all assets must be held in custody within the United States, either through state-managed multisignature wallets, qualified custodians, or exchange-traded products.
- The legislation aims to safeguard the state's reserves while expanding horizons and maintaining a watchful eye on investments in the ever-evolving world of technology and finance.
- New Hampshire Republicans praised the bill, stating that it positions the state as a leader in the digital commerce space, where New Hampshire shines.
- The Satoshi Action Fund, a pro-Bitcoin organization, has backed six similar bills in the U.S., and commented that other states are likely to follow New Hampshire's lead in crypto investments.
- In contrast, Florida and Arizona have faced obstacles in their attempts to invest in Bitcoin, with Florida dropping two bills and Arizona gunning down a similar bill, labeling digital assets as "untried ventures." However, Arizona still has a chance to pass a similar bill, HB 1371, although Governor Katie Hobbs' current stance on crypto suggests it is unlikely to transform anytime soon.
