XRP News Today: New Hampshire Approves 5% Public Funds for Bitcoin Investment

New Hampshire has made history by becoming the first U.S. state to approve the investment of public funds into cryptocurrencies, specifically Bitcoin (BTC). Governor Kelly Ayotte signed a law on May 6, 2024, permitting the state to establish a strategic crypto reserve. This legislation allows up to 5% of New Hampshire's public funds to be invested in digital assets with a market capitalization of at least $500 billion, a threshold currently met only by Bitcoin.

New Hampshire's move positions it ahead of other states that have been considering similar investments, including Ethereum (ETH), XRP (XRP), and Solana (SOL). By authorizing its treasurer to set up a crypto reserve, New Hampshire could also outpace the U.S. federal government in forming a Bitcoin stockpile, a goal that President Donald Trump has publicly endorsed.

The decision has sparked debate among state Republicans, who have celebrated New Hampshire's pioneering role in crypto investment. However, other states like Arizona and Florida have rejected the idea of a strategic crypto reserve, citing the high risk associated with digital assets and the potential threat to public pensions. Arizona’s governor recently vetoed similar legislation, while Florida has resisted intense lobbying efforts to create a crypto reserve. The U.S. Treasury Department is currently examining the feasibility of a strategic Bitcoin reserve as proposed by President Trump.

Bitcoin's current market price is near $97,000, reflecting its status as the leading cryptocurrency by market capitalization. The approval of New Hampshire's strategic crypto reserve underscores the growing acceptance of digital assets as a viable investment option, despite the inherent risks and volatility associated with the crypto market. This move could set a precedent for other states and potentially influence federal policy on cryptocurrency investments.