New Hampshire Eyes Bitcoin Treasury Reserve in New Bill

New Hampshire has joined other states pursuing Bitcoin treasury reserve with a bill framed as a pathway to sovereignty.

New Hampshire Representative Keith Ammon tabled a proposal to enable the BTC treasury reserve.

The Republican politician submitted a proposal on Friday to obligate the state’s Treasury to invest some public funds into assets and precious metals.

Steps Towards Bitcoin Reserve

The approval of the proposal would insulate the Granite State’s funds from runaway inflation. Ammon added that adopting the Bitcoin reserve would fit with the cultural values of Hampshire’s residents.

Ammon reiterated that the New Hampshire ethos stipulates little interruptions. He cited that Live Free or Die requires the state not to burden residents with overregulation.

Ammon acknowledged the existing ties to the US Dollar. While such ties are not optional, the lawmaker observed the opportunity for the state to allocate a portion of the funds to the uncorrelated asset class.

The bill’s text reveals that the state treasurer is capable of allocating funds to precious metals, particularly gold and platinum. This capability is extended to digital assets.

The allocation to digital assets is permissible only to those whose market capitalization surpasses the $500 billion average over the previous calendar year.

The conditions stipulated in the proposal make Bitcoin the sole digital asset that the state Treasurers can currently engage in.

New Hampshire Adds Crypto Assets to State Funds Investment

The bill permits the treasurer to undertake staking or lending with the crypto assets. This language appears to reference the process by which users within the proof-of-stake (POS) networks, including Solana and Ethereum, earn rewards.

However, the investment amount should be within the 10% cap on public funds. The annual report shows that the Treasury’s holdings were $3.6 billion by June 30.

Ammon’s bill shares the views of President-elect Donald Trump, who urged the creation of the Bitcoin Strategic Reserve (BSR). Trump promised in July last year to establish the BSR while addressing the Bitcoin Conference in Tennessee.

Trump urged the attendees of the Bitcoin Conference 2024 in Nashville never to liquidate their BTC holdings. The soon-to-be 47th president, upon his January 20 inauguration, indicated that the US would create the Bitcoin stockpile.

Trump advocated during the last summer conference that the Bitcoin seized by US authorities would create the stockpile. Fresh off Trump’s pronouncement, Wyoming Senator Cynthia Lummis tabled the Bitcoin Act bill. The proposal mandates that the Treasury acquire up to 1 million Bitcoins in five years and hold them for two decades.

States Endorse Trump’s Bitcoin Reserve Idea

While crypto entrepreneurs, including BitMEX’s former chief Arthur Hayes, cast doubt on Trump’s establishment of the Bitcoin Reserve, a paced process is evident at the state level.

Like in New Hampshire, representatives from Texas, Ohio, and Pennsylvania are debating bills that aim to establish the strategic BTC reserve. 

Ammon reflected on the process of integrating Bitcoin into New Hampshire’s balance sheet. The lawmaker admitted having a short conversation with the state’s Treasurer, Monica Mezzapelle, about the bill. He confessed not knowing whether the treasurer was keen on the BTC reserve idea.

Mezzapelle has yet to provide more details about her views on the bill. She indicated that she had yet to review the proposal’s text.

Since 1920, the state of New Hampshire has held the initial presidential primary to allow voters to decide on the party candidates prior to other states. Ammon believes that along those lines, the state deserves the opportunity to establish the Bitcoirve first.

Ammon added that the state that delays building the Bitcoin reserves will ultimately lose. He observed the urgency of states acting sooner. Nonetheless, this involves educating state officials involved in the exercise.

Meanwhile, lawmakers from North Dakota introduced Resolution 3001, which aimed to select state funds to invest in precious metals and crypto assets.

Resolution 3001 targets curbing inflation threats to North Dakota’s finances by diversifying investments into various asset classes.

Senators Bob Paulson and Jeff Barta back resolution 3001. Representatives Todd Porter, SuAnn Olson, Matthew Heilman, Daniel Johnston, and Nathan Toman are also supporting the proposal.