New Hampshire Endorses Bitcoin and Cryptocurrency Investments as Legal State Asset
Breaking Ground in Crypto Investments
New Hampshire is making waves as the pioneering U.S. state to green-light investments in Bitcoin and other digital assets, marking a game-changing moment for cryptocurrency policy within the states.
Governor Chris Sununu signed House Bill 302 into law, remarking on the day, "New Hampshire continues to lead the nation in innovation." This bold move to invest in both cryptocurrency and precious metals was celebrated as a significant leap forward.
The legislation calls for up to 10% of the state's general fund and designated pools to be allocated into suitable assets, under specific eligibility criteria. Currently, only Bitcoin with btc1.23% market cap exceeds this threshold.
The bill outlines provisions for secure custody, either through state management, regulated custodians, or exchange-traded products.
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This New Hampshire Crypto Law
The legislation received mixed reactions during its legislative run. Republican Rep. Jordan Ulery hailed its potential to generate substantial returns for the state, while Democratic Rep. Terry Spahr voiced concerns about risks to the state's financial stability.
Despite facing criticism, HB302 narrowly passed in the House, garnered strong support in Senate committee votes, and found its way to Governor Sununu's desk. With its approval, New Hampshire emerges as a frontrunner in states experimenting with integration of digital assets in financial strategies.
This move comes against a backdrop of surging national interest in Bitcoin. Other states, including Texas and Arizona, have advanced similar legislation, although none have yet finalized laws enabling state-level crypto investment.
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Enrichment Data:
Key Aspects of the New Hampshire Bitcoin Law
- Investment Permission: The law permits the state treasurer to invest in digital assets with a market capitalization of at least $500 billion, primarily Bitcoin at this time.
- Eligible Fund Sources: The state's general fund and revenue stabilization fund can be utilized for these investments.
- Investment Class Diversification: Digital assets are added to the list of permitted investment assets alongside traditional options like bonds and stocks.
- Cap on Digital Asset Holdings: Investments in digital assets are capped at 5% of the state's total funds to maintain balance.
- Security and Custody: Stringent U.S.-regulated custody requirements ensure the security and transparency of the digital assets.
- Effective Date: The law will be implemented 60 days post its passage, enabling New Hampshire to set up a Bitcoin reserve.
Implications
This development is seen as a forward-thinking step to diversify state investments and could potentially spark similar actions among other states. It marks a significant milestone for government adoption of digital assets, positioning New Hampshire as a trendsetter in U.S. state crypto policies.
- The law in New Hampshire, referred to as HB302, allows for the investment of digital assets, primarily Bitcoin, due to its high market capitalization.
- With this legislation, up to 10% of the state's general fund and designated pools can be allocated for suitable digital assets.
- The eligibility criteria for these investments are specific and detailed in the law.
- Secure custody for these digital assets can be ensured through state management, regulated custodians, or exchange-traded products.
- Despite facing criticism, the bill successfully passed through the House, Senate committee votes, and was signed into law by Governor Chris Sununu.
- New Hampshire's decision to invest in Bitcoin and other digital assets marks a significant leap forward and sets a game-changing moment for cryptocurrency policy within the states.
- This move by New Hampshire could potentially inspire other states like Texas and Arizona to advance similar legislation, paving the way for government adoption of digital assets across the U.S.
