New Hampshire has become the first state in the U.S. to allow state treasurers to invest in Bitcoin, as Governor Kelly Ayotte signed a law enabling investments in digital assets. The law permits 5% of certain state funds to be allocated to Bitcoin, which is the only cryptocurrency meeting the market cap requirement. This move is celebrated by Bitcoin supporters and may influence other states considering similar legislation.
In a landmark decision, New Hampshire has become the first state in the U.S. to develop a strategic Bitcoin reserve. Governor Kelly Ayotte signed a new law that specifically allows the state treasurer to make investments in digital assets, including Bitcoin. This legislation marks a significant milestone for cryptocurrency supporters, signalling deeper institutional engagement with digital currency in the state.
The newly enacted law, cited as H.B. 302, authorises the state treasurer to allocate up to 5% of certain state funds into both precious metals and digital assets. Notably, it only permits investments in cryptocurrencies that boast a market capitalisation exceeding $500 billion, effectively making Bitcoin the only eligible option at the moment.
This law is seen as a substantial victory for Bitcoin advocates. They have long campaigned for similar measures to bolster strategic reserves in various states across the country. It’s worth mentioning that while New Hampshire has taken this step, Arizona lawmakers have also moved forward recently with a related initiative.
As states explore ways to adapt to the evolving financial landscape, this trend indicates that Bitcoin and other cryptocurrencies are increasingly gaining official recognition and potential acceptance as investment assets. Unsurprisingly, it begs the question of how this strategic reserve will affect both state finances and the broader crypto market.
The implications of this law could inspire other states to follow suit, potentially contributing to a larger movement toward the integration of digital currencies in public finances. Observers are keen to see how New Hampshire’s pioneering action will unfold and what precedent it might set for those contemplating similar approaches.
