New Hampshire Becomes First US State to Allow Crypto Investments

New Hampshire’s Governor Chris Sununu has signed a crypto reserve bill, allowing state investment in digital currencies with a market cap above $500 billion. This makes New Hampshire the first state to legally engage in such activities. The legislation excludes smaller tokens, with a mix of optimism and caution surrounding its implementation.

On Tuesday, New Hampshire’s Governor, Chris Sununu, signed a groundbreaking crypto reserve bill into law, making the state the first in the US to permit governmental investments in cryptocurrencies. This step signifies a notable shift in how states view digital assets, particularly as a viable option for state treasury investments.

The newly signed legislation opens the door for the New Hampshire state treasury to invest in cryptocurrencies that boast a market capitalization exceeding $500 billion. This move automatically excludes a significant number of smaller tokens, often referred to as memecoins, which have been at the centre of volatile investments.

Supporters of the bill expressed their enthusiasm for what they see as a forward-thinking approach to diversifying state investments. Strategies like this could possibly enhance state revenues, thus supporting local programs. However, there are also concerns regarding the volatility of cryptocurrencies and the need for stringent regulations to safeguard taxpayer funds.

While the potential benefits are being touted, some local citizens are voicing their worries about the ethical implications of such investments. Observers hope that the state will wield this new financial power responsibly and that it will steer clear of the notorious pitfalls associated with poorly managed crypto assets.