New Hampshire Leads the Charge with Bitcoin Treasury Reserve Proposal
By: Isha Das
In a bold move towards embracing digital assets, New Hampshire State Representative Keith Ammon has introduced a bill proposing the formation of a strategic Bitcoin reserve aimed at safeguarding state treasury investments. The proposal seeks to diversify the state's investment portfolio by incorporating digital assets with an average annual market cap exceeding $500 billion, specifically Bitcoin, and US-pegged stablecoins. According to the bill, these investments could make up no more than 10% of the state's total public funds, estimated to be around $360 million based on current treasury balances.
To ensure the security of these sizable investments, the bill mandates the use of "secure custody solutions" for handling digital assets, involving cryptographic private keys and approved custodians. Additionally, any exchange-traded products (ETP) involved must gain approval from established regulatory bodies like the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).
Bitcoin currently stands as the sole cryptocurrency meeting the bill's stringent market cap guidelines, highlighting its viability as an investment asset for New Hampshire's treasury. In anticipation of future adherence to the bill's requirements, the plan leaves room for the potential inclusion of other digital currencies such as Ethereum and Solana, particularly if these currencies achieve the necessary market caps. Not only that, but the bill foresees the possibility of the state earning passive income through staking should these conditions be met.
This legislative measure follows similar efforts in other states like Pennsylvania and Texas, signaling a potential trend toward digital asset adoption across the United States. Public discourse around the bill has seen support from leaders in the crypto space like Dennis Porter, CEO of Satoshi Action Fund, who described the regulation as a pragmatic approach to reducing political friction while fostering financial innovation. New Hampshire’s initiative heralds a noteworthy advancement in state-level financial strategies, which may continue to spark interest nationwide.
