Governor Kelly Ayotte has signed House Bill 302 (HB 302) into law, establishing a digital reserve fund that permits the state to hold Bitcoin and other large-cap digital assets. The law, which takes effect in 60 days, represents a cautious yet significant step toward fiscal diversification using cryptocurrencies.
Policy Framework Limits Risk
Under HB 302, the New Hampshire State Treasurer is authorized to acquire Bitcoin or other digital assets with a market capitalization exceeding $500 billion. Currently, Bitcoin is the only asset that meets this threshold, limiting exposure while allowing strategic investment. However, the law imposes a cap on crypto holdings, restricting them to no more than 5% of the state’s total reserves.
To mitigate risks, the legislation mandates that assets be held through U.S.-regulated structures, including state-controlled multisignature wallets, qualified custodians, or exchange-traded products registered in the U.S. This regulatory focus underscores the state’s commitment to asset security and taxpayer protection.
Legislative Support and Broader Implications
Representative Keith Ammon, a vocal cryptocurrency proponent, first introduced the bill based on the Satoshi Action model in 2022. Majority Leader Jason Osborne and the New Hampshire Blockchain Council, led by Ian Hueyett, were pivotal in advancing the legislation.
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The move aligns New Hampshire with a growing number of U.S. states exploring crypto-based reserve strategies. In contrast, similar efforts in Arizona and Florida faced setbacks, with the former’s proposal being vetoed and the latter withdrawing its initiative. Meanwhile, North Carolina continues to pursue a comparable framework backed by influential lawmakers.
Strategic Move Amid Fiscal Diversification
HB 302’s passage signifies New Hampshire’s readiness to cautiously integrate Bitcoin into its financial reserves, reflecting a broader trend of crypto adoption at the state level. By setting clear guidelines on asset security and limiting exposure, the state aims to balance innovation with fiscal prudence, potentially setting a precedent for other states eyeing digital asset integration.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
