New Hampshire House Approves Bitcoin Reserve Bill, 5% of Funds Allocated

The New Hampshire House of Representatives passed a significant bill on Thursday, authorizing the state to establish a Bitcoin reserve. The bill, known as HB302, was approved by a narrow margin of 192 votes in favor and 179 against. This legislation allows the state's treasury to invest in precious metals and digital assets, with a specific focus on Bitcoin. The bill now advances to the New Hampshire Senate for further consideration.

Proposed in January, HB302 initially suggested allocating up to 10% of the state's public funds to eligible assets. However, the amended bill reduces this allocation to 5%. The eligible assets include precious metals like silver or gold, as well as any digital assets with a market capitalization exceeding $500 billion averaged over the previous calendar year. Currently, only Bitcoin meets this criterion. With approximately $3.6 billion in funds, the state could potentially invest up to $181 million in Bitcoin or precious metals.

New Hampshire Representative Keith Ammon, who proposed the bill, emphasized the importance of diversifying the state's investments. He noted that while the state is tied to the U.S. dollar, investing a small portion of public funds into an uncorrelated asset class like Bitcoin could provide significant benefits. The bill also outlines strict guidelines for the custody and management of digital assets, ensuring they are held by qualified custodians or through secure custody solutions.

New Hampshire is not alone in considering Bitcoin reserve bills. Several other states, including Pennsylvania and Wyoming, have explored similar legislation but have thus far been unsuccessful in passing it through their respective Houses. The passage of HB302 in New Hampshire marks a significant step forward in the recognition and adoption of cryptocurrencies at the state level. This move could set a precedent for other regions to follow, potentially leading to broader acceptance and integration of digital currencies within governmental frameworks.