① New Hampshire legislators voted to pass HB 302, becoming the first state in the USA to establish a reserve for Cryptos; ② The bill allows the state government to invest up to 5% of public funds in Precious Metals and digital Assets with a Market Cap over 500 billion USD.
According to a report from Financial Association on May 7 (editor Liu Rui), on Tuesday Eastern Time, New Hampshire legislators voted to pass a bill making the state the first in the USA to establish a reserve for Cryptos.
The first state to establish a Bitcoin reserve.
"New Hampshire is once again the first in the nation!" wrote New Hampshire Governor Kelly Ayotte on X, "I just signed a new law allowing our state to invest in Cryptos and Precious Metals."
This tweet refers to the HB 302 bill, which allows the state government to invest up to 5% of public funds in Precious Metals and digital Assets with a Market Cap over 500 billion USD—only Bitcoin meets this condition in the field of Cryptos.
According to the bill, the state treasurer will be able to Hold digital Assets using secure custodial solutions or through Exchange-traded products. Now that the bill has passed, it will become law within 60 days.
Contents of the HB 302 bill.
The passage of this bill not only makes New Hampshire the first state in the USA to establish a Crypto reserve, but it also indicates that the state has advanced further down the path of crypto reserves than the federal government.
During the campaign, Trump repeatedly claimed he would establish a national Bitcoin reserve, a slogan that once excited bullish traders in the crypto space. However, so far, despite Trump having been in office for more than a hundred days, his policy actions concerning Bitcoin reserves have been relatively limited.
Although the Trump administration has ordered the creation of a national cryptocurrency reserve, this reserve currently only holds Bitcoin that the government already possesses, with no commitment to purchase more Bitcoin.
Is it wise to have a cryptocurrency reserve?
In recent years, proponents of establishing a cryptocurrency reserve have been advocating that both federal and state governments in the USA should hold tokens like Bitcoin as a hedge against inflation and instability in the traditional financial system.
Bullish traders in the crypto space envision that establishing cryptocurrency reserves by governments across the USA could accelerate similar actions by jurisdictions globally, thereby driving up the price of Bitcoin.
However, critics question whether it is wise to tie the financial future of the USA to an entirely speculative and highly volatile asset. They believe this reserve is merely a scheme to boost the value of Bitcoin, primarily benefiting the portfolios of early investors.
With the push from the Trump administration, various states in the USA are currently considering similar cryptocurrency reserve legislation, with New Hampshire being the first to pass relevant bills.
In contrast, this bill has faced significant resistance in several other states in the USA. In March of this year, bills in Montana, Wyoming, North Dakota, and Pennsylvania failed to pass. Last week, Florida became the latest state to fail to pass a cryptocurrency reserve bill.
Editor/Somer
