- New Hampshire’s law allows the state to invest in Bitcoin and other digital assets.
- The law mandates secure custody for digital assets through regulated U.S. custodians.
- Satoshi Action’s framework paves the way for Bitcoin adoption in state treasuries.
The U.S. state of New Hampshire has become the first state to officially pass its ‘Strategic Bitcoin Reserve’ bill into law. On May 6, Governor Kelly Ayotte signed House Bill 302 or HB 302, allowing the state treasurer to invest in Bitcoin and other digital assets. This is a big step to integrate digital assets into the state’s financial reserves.
Framework for Investment in Digital Assets
The recently passed legislation in New Hampshire lets the state treasurer buy Bitcoin and other digital assets with a market cap exceeding $500B. Currently, there is only one digital asset that fits this threshold, and that is Bitcoin. The law, however, limits digital asset holdings to 5% of the total state resources. This will ensure that Bitcoin fits with the overall investment strategy of the state while being fiscally responsible.
The bill also creates a secure and regulated way to hold such digital assets. It requires all assets to be held in U.S.-regulated custody solutions like state-controlled multisig wallets, qualified custodians, or U.S. exchange-traded products. By doing this, taxpayers’ funds are protected and they are guaranteed transparency and stability in managing public resources.
Satoshi Action’s Role in Shaping the Bill
This legislation’s model was drafted by a nonprofit policy organization, the Satoshi Action Fund. Dennis Porter, the organization’s CEO, said the bill is important, noting that it ‘sets a path for other states to come to follow.’ Porter argues that HB 302 protects taxpayer money, diversifies state reserves, and places New Hampshire at the forefront of a growing national push to bring Bitcoin into state treasuries.
New Hampshire’s law successfully passing will be a powerful precedent for any other state considering integrating Bitcoin into its financial system. Efforts in some states, such as Arizona, Texas, and Michigan, have stalled, but other states are considering similar legislation. For instance, Arizona’s own Bitcoin reserve bill was vetoed by the governor in early May over fears that digital assets are volatile.
Potential for National Adoption
A wider adoption of Bitcoin as a reserve asset at the state level is expected to be sparked by the new law. It serves as a test case for other states that are trying to modernize their financial approach and shield their reserves from inflation. The move is occurring at a time when many states are turning to digital assets as an important aspect of their overall financial strategy.
This milestone might kick off a national trend of Bitcoin adoption by states in their reserves with New Hampshire leading the way for fiscal innovation and stability. By balancing the innovative nature of Bitcoin with prudent money management, the state’s approach promises long-term security for taxpayers.
