New Hampshire House Passes Bill to Create State Bitcoin Reserve

Legislative Update

The New Hampshire House of Representatives has passed a bill proposing the creation of a state Bitcoin reserve. The bill, HB302, would allow the state’s treasury to invest in precious metals and digital assets, with a focus on Bitcoin.

Bill Details

The bill was passed with a narrow margin of 13 votes, with 192 representatives voting in favor and 179 voting against. The bill will now move on to the New Hampshire Senate for further consideration.

The bill proposes to allocate up to 5% of the state’s public funds to eligible assets, with a focus on Bitcoin. This would allow the state to diversify its investments and reduce its reliance on traditional assets.

Investment Limits

The bill sets a limit of 5% on the amount of public funds that can be invested in digital assets, with a focus on Bitcoin. This limit is designed to ensure that the state’s investments are diversified and do not put too much risk on the state’s financial stability.

Custody Requirements

The bill requires that digital assets held by the state must be held by a qualified custodian, by the treasurer with a secure custody solution, or via an exchange-traded product from a registered investment company. This is designed to ensure that the state’s digital assets are secure and protected from unauthorized access.

State Treasury Reserves

The state’s treasury currently carries around $3.6 billion in funds, which would be eligible for investment under the bill. This would allow the state to invest up to approximately $181 million worth of precious metals or Bitcoin.

Bitcoin Reserve

If the state were to invest its entire allocation in Bitcoin, it would give the state a reserve of around 2,269 BTC, based on the current price of $79,755. This would be a significant addition to the state’s financial reserves and could provide a hedge against inflation and market volatility.

Comparison to Other States

New Hampshire is not the only state considering a Bitcoin reserve. Other states, such as Pennsylvania and Wyoming, have introduced similar bills, but have not yet passed them. The bill in New Hampshire is currently the most advanced of these efforts.

Conclusion

The passage of HB302 in the New Hampshire House of Representatives is a significant step towards the creation of a state Bitcoin reserve. The bill’s focus on diversifying the state’s investments and reducing its reliance on traditional assets could provide a hedge against inflation and market volatility. The bill will now move on to the New Hampshire Senate for further consideration, where it will be subject to further debate and amendment.

FAQs

• Q: What is the purpose of the bill?
  A: The purpose of the bill is to create a state Bitcoin reserve and to allow the state’s treasury to invest in precious metals and digital assets.
• Q: How much money is eligible for investment under the bill?
  A: The bill proposes to allocate up to 5% of the state’s public funds to eligible assets, with a focus on Bitcoin.
• Q: What are the custody requirements for digital assets held by the state?
  A: The bill requires that digital assets held by the state must be held by a qualified custodian, by the treasurer with a secure custody solution, or via an exchange-traded product from a registered investment company.
• Q: How much Bitcoin would the state have in reserve if it invested its entire allocation?
  A: If the state were to invest its entire allocation in Bitcoin, it would give the state a reserve of around 2,269 BTC, based on the current price of $79,755.
• Q: Is this the first state to consider a Bitcoin reserve?
  A: No, other states, such as Pennsylvania and Wyoming, have also introduced similar bills, but have not yet passed them.