New Hampshire emerges as a pioneer in cryptocurrency legislation by enacting a strategic Bitcoin reserve bill, paving the way for potential state adoption of digital assets.
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New Hampshire plans to diversify 5% of its reserve to BTC and other digital assets.
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The passed Bitcoin law will be effective by July 2025; will others follow suit?
On the 6th of May, New Hampshire made history by signing the strategic Bitcoin [BTC] reserve bill into law. This made it the first U.S. state to advance such a bill into law, hailed Governor Kelly Ayotte. She said,
“New Hampshire is once again first in the Nation! Just signed a new law allowing our state to invest in cryptocurrency and precious metals.”
New Hampshire Bitcoin Reserve Law: A Historical Step
The bill was inspired by Satoshi Action Fund, a Bitcoin advocacy group. According to the advocacy firm, the passage allows the state to create a Bitcoin and Digital Asset Reserve Fund. Per the passed bill (HB 302), the state can buy BTC or any other digital asset with a market cap above $500 billion.
The assets will be held via custodians or an ETF (exchange-traded fund) and capped at 5% of the total state funds. For his part, ETF Store’s Nate Geraci praised the update as a warning shot to those who still believe ‘crypto is a scam.’
“And you still think crypto is a scam. Time to pay attention.”
Source: X (Excerpt of the strategic Bitcoin reserve law)
Arizona and New Hampshire were top contenders in the heated state race for the strategic BTC reserve. However, Arizona’s bill was vetoed by the governor, citing risks to retirement funds.
Source: Bitcoin Laws
The New Hampshire Bitcoin law will take effect after sixty days. Simply put, the market will be eager to learn the amount the state will allocate for its first BTC buy by July 2025. It remains to be seen whether North Carolina (NC) and Texas (TX) will follow suit.
Implications for Other States
New Hampshire’s legislative move could inspire other states to explore similar strategies in managing state funds. With the ongoing discussions around cryptocurrency’s legitimacy, the spotlight on New Hampshire may result in a ripple effect, pushing other governors and lawmakers to reconsider their stance on digital assets.
Conclusion
The passage of the Bitcoin reserve bill in New Hampshire stands as a significant milestone in the evolving narrative of cryptocurrency integration into traditional state finances. As other states evaluate their approaches, New Hampshire’s proactive measures may set a precedent that solidifies Bitcoin’s role in public finance. Future adoption of BTC reserves could reshape financial strategies across the United States.
