New Hampshire becomes the first U.S. state to authorize public investment in Bitcoin and cryptocurrencies. Governor Ayotte signed House Bill 302, permitting up to 10% of state funds to be invested in digital assets, mainly Bitcoin, with strict eligibility criteria. The legislation shows a mix of support and criticism, marking a significant step for state-level crypto integration in public finance, amid growing national interest.
New Hampshire has officially become the first U.S. state to greenlight investments in Bitcoin and other digital currencies using public funds, a noteworthy development in the landscape of state-level cryptocurrency regulation. This significant measure was signed into law by Governor Kelly Ayotte under the House Bill 302, who celebrated the state’s proactive role in an announcement made on X, stating, “New Hampshire is once again first in the nation.”
The new legislation allows the allocation of up to 10% of the state’s general fund and approved investment pools towards qualified assets, which involves some stringent eligibility criteria. Specifically, digital assets must hold a market capitalization exceeding $500 billion, thereby effectively restricting current investments predominantly to Bitcoin (BTC), given its established market presence.
Moreover, the bill includes critical provisions to ensure asset security. It mandates that these investments be managed by state officials, regulated custodians, or via exchange-traded products, aiming to mitigate financial risks associated with digital currencies.
The legislative process surrounding this bill saw a mix of support and dissent. Republican Representative Jordan Ulery voiced optimism regarding the potential financial benefits of the investment, while Democratic Representative Terry Spahr raised alarm over the inherent risks to the state’s financial stability. Despite a narrow passage in the House, the bill garnered robust backing in the Senate committee and eventually reached the governor’s desk.
New Hampshire’s proactive stance comes amid a growing interest in Bitcoin across the United States. Several states, such as Texas and Arizona, are also looking at similar legislative efforts. However, New Hampshire stands out as the first to actually implement a legal framework to facilitate state-level cryptocurrency investments.
This move not only places New Hampshire at the forefront of a very modern financial frontier but also sets a precedent for how other states might approach the emerging digital asset landscape.
