New Hampshire Sets a First for Digital Assets

New Hampshire has become the first state to invest its state funds in Bitcoin. Now signed in, the practice can begin in 60 days. We discuss this history-making event below.  

The state of New Hampshire has made history by introducing House Bill 302. This will allow the state to begin investing in precious metals, but crucially, for the first time in the US, a state will be able to invest in digital assets. While other states have moved to do this over the past few months, their bills have been stalled or vetoed, making New Hampshire a pioneer.

New Hampshire’s Strategic Reserve

Signed in by Governor Kelly Ayotte, she turned to X to announce, “New Hampshire is once again first in the nation! Just signed a new law allowing our state to invest in cryptocurrency and precious metals.” The state’s treasury can now allocate up to 5% of public funds in digital assets. They must have a market cap of more than $500 billion, with Bitcoin expected to fill most of that, due to this being the only asset over that threshold.

Now passed, the bill will become law in 60 days. Assets will be purchased and held by the state treasurer in a custody solution of an exchange-traded product. This model has been built by the Satoshi Action Fund, named after the creator of Bitcoin. A nonprofit organization, its method aims to diversify state reserves, overhaul monetary strategy, and safeguard the money of the taxpayers in the state.

Satoshi Action CEO Dennis Porter has said it is a roadmap every state can follow. He believes HB 302 shows you can do all these things while using the most secure monetary network on earth. They also added that it was not just a bill, but that it had sparked a movement.

This is one piece of news that helped push the price of Bitcoin up over the past week. The 1 BTC to USD ratio hit over $105,000 on Monday, prompting people to speculate on it beating its all time high. However, sell offs and investors taking profit saw it retreat to settle at around the $103,000 mark, where it has stabilized at the time of writing.

This is a similar strategy to the order passed by the US Government earlier in the year. This called for a strategic reserve made of cryptocurrencies, primarily Bitcoin, but also involving altcoins such as Ethereum and Litecoin. However, this is not going to be funded by public funds. Instead, it will be stocked from seized criminal assets. The government has also reiterated that taxpayers will not be footing the bill. This is what makes New Hampshire’s bill so unique.

Arizona Signs In Crypto Reserve

Arizona also signed its own cryptocurrency bills into being, albeit in a much more cautious and measured manner. Governor Katie Hobbs signed House Bill 2749 last Wednesday. It aims to allow abandoned digital assets, such as cryptocurrency, to be put into a reserve. Assets can be taken if a person does not respond to communication from the state within three years. These funds will then be staked or airdropped to create a Digital Asset Reserve Fund.

However, the Governor had vetoed another bill the same week. This was similar to that of New Hampshire, in which active public funds would be invested in Bitcoin and digital assets. A press release by Chairman Weninger announced, “Digital assets aren’t the future, they’re the present. This law ensures Arizona doesn’t leave value sitting on the table and puts us in a position to lead the country in how we secure, manage, and ultimately benefit from abandoned digital currency.”

It is indicative of the cautious yet optimistic approach that the state is taking. A further Senate Bill 1373 was also vetoed. This would have allowed digital assets and Bitcoin gained through seizures and legislative procedures to be placed in a strategic reserve. This followed her veto of Senate Bill 1025 in May, which would have allowed around 10% of the state’s treasury and retirement funds to be invested in Bitcoin and other digital assets. She also vetoed Senate Bill 1024, which would have allowed the payment of taxes, fines, and fees in crypto payments.

Her views were apparent in her statements. “Current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars,” she wrote. “I have already signed legislation this session that allows the state to utilize cryptocurrency without placing general fund dollars at risk.”

Arizona’s Crypto ATM Crackdown

Furthermore, Hobbs has also introduced House Bill 2387 and signed it in. This will aim to crack down on he use of crypto ATM machines. It will add a host of consumer rules that will increase transparency and improve consumer protection.

With this law, the transaction limit will be capped at $2,000 per day. This can rise to $10,500 for returning customers after a period of time. ATM machines must also have 24/7 customer service numbers, along with multilingual displays about crypto scams. Furthermore, anyone tricked into sending money as part of a cryptocurrency scam can claim their money back, including fees, if reported within 30 days.

All of this is further institutional acceptance. Despite some states treading more cautiously than others, it shows an overall willingness to explore cryptocurrency in state finances. Over time, this can only increase the long-term value of this digital asset.