New Hampshire Enacts Strategic Bitcoin Reserve Law

By: Eva Baxter

New Hampshire has made history by becoming the first U.S. state to enact a state-level Strategic Bitcoin Reserve law. Governor Kelly Ayotte signed the bill, designated HB 302, into law on May 6, allowing state funds to be allocated to Bitcoin and certain other digital assets. The groundbreaking legislation authorizes the state treasurer to incorporate Bitcoin into a regulated reserve structure, marking a significant step in integrating cryptocurrency into government financial strategies.

The law was initially introduced by Representative Keith Ammon and supported by key figures, including Majority Leader Jason Osborne and the New Hampshire Blockchain Council. The framework permits investment in digital assets with a market capitalization exceeding $500 billion, which currently includes only Bitcoin, capping holdings at 5% of the state's reserve portfolio. Notably, the Bitcoin holdings must be secured through US-regulated custody arrangements, ensuring compliance and transparency.

Governor Ayotte expressed her enthusiasm for the initiative, noting the state's pioneering role in digital asset adoption. The legislation was developed in consultation with the Satoshi Action Fund, a nonprofit dedicated to promoting Bitcoin use in public sector finances. Dennis Porter, CEO of the Fund, lauded the law as a potential model for nationwide adoption, highlighting that New Hampshire is setting a precedent for other states to follow.

Currently, only a minority of U.S. states have pursued similar legislation, with 37 states having introduced, but not yet passed, comparable proposals. New Hampshire's implementation of HB 302 positions it as a leader in digital transformative policies. Other states like Arizona, North Carolina, and Texas are watching closely as they consider similar Bitcoin reserve initiatives, reflecting a growing movement towards recognizing cryptocurrencies as viable financial instruments in state treasuries.