New Hampshire Becomes First State to Approve Crypto Reserve Law

New Hampshire is the first state to legally invest public funds in cryptocurrencies, thanks to a new law signed by Governor Kelly Ayotte. This law permits up to 5% of public funds, primarily focusing on bitcoin, amidst challenges faced by other states like Arizona and Florida. The move signals a significant leap in state governance regarding digital assets.

New Hampshire has made history as the first state in the U.S. to approve a law permitting the investment of public funds in cryptocurrencies. Governor Kelly Ayotte signed the bill, allowing up to 5% of the state’s public funds to be invested in crypto assets and precious metals. Specifically, the law focuses on assets that boast a market cap of at least $500 billion, which means right now, only bitcoin qualifies.

This move comes at a time when several other states—like Arizona and Florida—have faced hurdles trying to push through similar legislation. As New Hampshire sets itself apart, it stands in a unique position, potentially poised to create a crypto stockpile ahead of the federal government. Governor Ayotte expressed pride in her state’s pioneering action on social media, emphasizing, “New Hampshire is once again first in the Nation.”

State Republicans in New Hampshire took to social media, claiming, “OFFICIALLY the first state to lay the groundwork for a strategic bitcoin reserve.” Their message reflects a clear confidence in leading the charge towards integrating cryptocurrency into public finance. The enthusiasm is palpable—they’re embracing the digital future and shaking off limitations, embodying their state slogan, “Live Free or Die.”

Meanwhile, other states are running into roadblocks. Arizona had previously pushed a similar bill, but it was ultimately vetoed. Florida, too, pulled back its own legislation regarding reserves. New Hampshire’s successful passage of the crypto investment bill means it could set a precedent for other states hoping to follow suit in the future.

Interestingly, there’s been some federal discussion around crypto reserves as well. Former President Donald Trump previously called for a national bitcoin reserve, but as it stands, the Treasury Department is still figuring out how to incorporate cryptocurrency into federal assets. This backdrop underlines just how contentious and evolving the landscape is for both state and federal legislation concerning digital currencies.

As the new law takes effect, eyes will be on New Hampshire to see how this strategy unfolds. It’s a bold move in a time of uncertainty, granting public finance a more modern twist. How this will affect the state’s economy remains to be seen, but the significant shift toward accepting cryptocurrency investments is a clear sign that the tides are changing in state governance.

In summary, New Hampshire has carved a niche for itself as the first state to legally invest public funds into cryptocurrencies—particularly bitcoin. This breakthrough comes amidst a wave of challenges faced by other states attempting similar initiatives. Meanwhile, the federal government continues to weigh its options on crypto reserves threatening to lag further behind. New Hampshire’s pioneering law marks a potentially revolutionary shift in how states view and handle digital assets, paving the way for future legislative changes in this rapidly evolving field.

Original Source: www.coindesk.com