New Hampshire Becomes the First State to Establish a Crypto Reserve

Legislators in New Hampshire have voted to pass a bill that establishes the first state crypto reserve.

The bill, HB 302, will allow the state treasurer to invest as much as 5% of New Hampshire's public funds into precious metal and digital assets with a market cap of over $500 billion. Among crypto tokens, that would include only bitcoin.

Digital assets will be held by the state treasurer using a secure custody solution or through an exchange-traded product. Now that it's been passed, the bill will become law in 60 days.

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 passage of the crypto reserve bill not only makes New Hampshire the first state to establish a reserve, but the state has also gone a step further than the federal government.

A national bitcoin reserve was a key priority for crypto bulls who cheered Donald Trump's presidential win, but his policy has so far fallen short. The Trump administration issued an order to create a US reserve, but it would be stocked only with bitcoin already owned by the government, with no promise to buy more.

Bitcoin enthusiasts have argued that federal and state governments should stockpile the token as a hedge against inflation and instability in the traditional financial system, and legislation has been introduced in states across the country.

Some of these efforts have lost steam, however. By March, bills had failed to advance in Montana, Wyoming, North Dakota, and Pennsylvania. Last week, Florida became the latest state to withdraw reserve bills.

Advocates for a US reserve have argued that its creation could accelerate similar stockpiles across jurisdictions and even the world, pushing the price of bitcoin higher. The top token was about flat on Tuesday afternoon, trading at $94,800.