Florida and New Hampshire Are Proceeding With Bills That Would Allow State Investment in Bitcoin

In a significant move towards the investment in digital assets in state fiscal planning, Florida and New Hampshire are proceeding with bills that would allow state investment in Bitcoin.

In a significant move towards the inclusion of digital assets in state fiscal planning, both Florida and New Hampshire are proceeding with bills that would allow the state to invest in Bitcoin.

This forms part of a broader trend among U.S. states to consider cryptocurrencies as a serious part of their portfolio.

Earlier this year, an investment manager calculated that if all the bills presented in 18 states on the establishment of state Bitcoin reserves were passed, it would see over $23 billion worth of Bitcoin bought.

New Hampshire’s HB302: A Step Towards Digital Asset Investment

On Monday, April 10, the New Hampshire House of Representatives approved House Bill 302 (HB302) by a vote of 192–179. The bill, now headed to the state Senate, aims to allow the state treasurer to invest up to 10% of the state’s general fund and other funds authorized into a combination of digital assets and precious metals.

Most significantly, the bill calls for investment in only those cryptocurrencies with a market capitalization of more than $500 billion, a level currently met by only Bitcoin.

HB302 also mandates strict custody provisions, where digital assets are held directly by the state treasurer via secure storage solutions, by a qualified custodian, or by a registered exchange-traded product. It also permits the treasurer to engage in lending or staking activities subject to the provision that the state has legal ownership and utilizes approved third-party solutions.

While supporters such as Republican Rep. Jordan Ulery highlight the bill’s potential to yield high returns for the state, critics like Democratic Rep. Terry Spahr expressed concerns about the risks of committing the state to particular asset classes during the volatile crypto climate.

Florida’s HB487: Unanimous Committee Approval

Meanwhile, Florida is also moving forward with its own Bitcoin reserve bill. House Bill 487 (HB487) was unanimously voted through by the state’s Insurance and Banking Subcommittee on Monday, April 10. The bill authorizes the state’s Chief Financial Officer and State Board of Administration to invest up to 10% of certain state funds, such as the General Revenue Fund and Budget Stabilization Fund, in Bitcoin.

HB487 has provisions for dealing with digital assets in a manner that provides for their direct custody by the state treasurer in secure storage solutions, by a qualified custodian, or by a registered exchange-traded product. It also permits the treasurer to engage in lending or staking activities subject to the provision that the state has legal ownership and utilizes approved third-party solutions.

Republican Representative Webster Barnaby, the bill’s sponsor, remarked that this bill places Florida at the forefront of digital financial innovation.

“This legislation is a testament to the growing recognition of cryptocurrencies as strategic assets,” stated Tom Tirrell, an attorney at Miller & Zois and part-time lecturer in Blockchain Law and Cryptocurrency at the University of Baltimore School of Law.

“As other states look to follow suit, we could be seeing a transformed approach to public finance in the U.S.,” he added.