New Hampshire State Representative Introduces Bill for Digital Asset Reserve
New Hampshire State Representative Keith Ammon has put forth a groundbreaking proposal to create a strategic reserve of digital assets worth over $500 billion in average yearly market cap. The bill also includes provisions for US-pegged stablecoins to be added to the state treasury.
Key Highlights of the Bill
- The legislation caps investments in alternative assets at 10% of the total public funds, amounting to approximately $360 million based on the ending balance as of June 30.
- Assets must be held through secure custody solutions, ensuring exclusive access to cryptographic private keys, qualified custodians, and registered exchange-traded products.
- Approval of ETPs by regulatory bodies such as the SEC or CFTC is mandatory.
Bitcoin Emerges as the Primary Choice
According to data from CryptoSlate, Bitcoin (BTC) is the only cryptocurrency that meets the market cap requirement outlined in the bill. In addition to Bitcoin, stablecoins like Tether USD (USDT) and USD Coin (USDC) can also be included in the state treasury’s portfolio.
Diversification Opportunities
The bill allows for investments in traditional precious metals like gold, silver, and platinum alongside cryptocurrencies. It also opens the door for staking activities, paving the way for potential future additions of assets like Ethereum (ETH) and Solana (SOL).
Industry Response
The CEO of Satoshi Action Fund, Dennis Porter, expressed support for the bill, emphasizing the importance of setting high market cap thresholds to regulate state investments in Bitcoin. Porter clarified that some US states require bills to be tech-neutral, which influences the wording of the legislation.
Porter explained, “It’s not a ‘sneaky’ way. Some states will require us to develop tech neutral bills which is very common in policy. It’s a way to reduce political friction. Some bills will be Bitcoin exclusive, some will be based on market cap. We work with lawmakers to ensure they have confidence in the bill passing.”
State Initiatives
New Hampshire is at the forefront of a wave of states exploring the establishment of Bitcoin strategic reserves. Representative Mike Cabell in Pennsylvania and Representative Giovanni Capriglione in Texas have also introduced similar legislation. Alabama and Florida are among the states considering similar proposals.
References:
New Hampshire Treasury Annual Report 2024
