New Hampshire has indeed made history by becoming the first US state to pass a strategic Bitcoin reserve bill, known as HB 302. This law allows the state treasurer to allocate up to 5% of public funds to Bitcoin and other digital assets with a market capitalization of over $500 billion, which currently only Bitcoin qualifies for.
*Key Details of the Bill:*
- *Digital Asset Allocation:* Up to 5% of state funds can be held in Bitcoin or other eligible digital assets.
- *Secure Custody Solutions:* The state will use highly secure custody solutions, such as state-controlled multisig wallets, qualified custodians, or US-regulated exchange-traded products (ETPs), to hold digital assets.
- *Market Capitalization Requirement:* Only digital assets with a market capitalization of over $500 billion are eligible for inclusion in the reserve.
*Implications and Reactions:*
- *Trailblazing Legislation:* New Hampshire's move is seen as a pioneering step in securing taxpayer funds through decentralized finance strategies.
- *Industry Support:* Dennis Porter, CEO of Satoshi Action Fund, praised the bill, saying it proves that states can protect taxpayer money, diversify reserves, and future-proof state treasuries while embracing the security of the Bitcoin network.
- *Potential for Other States:* This development may inspire other states to consider similar crypto initiatives, although not all proposals have been successful, as seen in Arizona and Florida .
