Nikolas Sargeant
In a groundbreaking move, New Hampshire has become the first U.S. state to establish a strategic Bitcoin reserve. Governor Kelly Ayotte signed House Bill 302 into law, allowing the state treasurer to invest up to 5% of public funds in Bitcoin and precious metals. This legislation positions New Hampshire as a pioneer in integrating digital assets into state financial strategies.
The law stipulates that eligible digital assets must have a market capitalization exceeding $500 billion, effectively limiting investments to Bitcoin. Acquired assets will be securely stored through qualified custodians or exchange-traded products, ensuring compliance with stringent security standards. This approach reflects a cautious yet forward-thinking adoption of cryptocurrency within state governance.
New Hampshire's initiative stands in contrast to federal efforts, such as the Trump administration's proposal to establish a national Bitcoin reserve using existing government-held assets without new acquisitions. By proactively investing in Bitcoin, New Hampshire aims to leverage the potential of digital assets as a hedge against inflation and financial instability.
This legislative action could set a precedent for other states considering similar measures. Florida recently pulled the plug on its crypto reserve bill, and the Governor of Arizona vetoed similar legislation. With at least five states exploring legislation to incorporate Bitcoin into their strategic reserves, New Hampshire's lead may catalyze broader adoption of cryptocurrency in state financial planning.
