New Hampshire Bitcoin Reserve Bill Passes Key Committee Vote, Allowing Investment of Up to 5% of State Funds in BTC

New Hampshire's Bitcoin reserve bill, allowing up to 5% state fund investment in BTC, has passed a key committee vote.

A key House committee has approved a bill that would allow New Hampshire to invest in bitcoin.

The House Commerce and Affairs Committee voted 16-1 in favor of House Bill 302, sending it to the full House for a final vote. The bill, introduced by Republican Keith Ammon of Hampstead and supported by Democrats Chris McAleer of Manchester and Carry Spier of Manchester, would allow the state to invest up to 5% of its general fund, revenue stabilization fund, or other state funds in bitcoin.

"This bill is a common-sense measure that would allow New Hampshire to diversify its investment portfolio and potentially generate higher returns for taxpayers," Ammon said. "With interest rates at all-time lows and the stock market at record highs, it is time for the state to consider new investment opportunities."

The bill also includes several safeguards to ensure that any bitcoin investments are made prudently and securely. For instance, the bill requires that any bitcoin purchased by the state be held by a qualified custodian or in an exchange-traded fund. It would also permit investments in gold, silver, and platinum.

The bill sets a high market capitalization threshold for any digital asset to be eligible for investment by the state. Specifically, it requires an average market capitalization of $500 billion over the past year. Currently, only bitcoin meets this requirement, with a market cap of $1.81 trillion.

The second-largest cryptocurrency, Ethereum, has a market cap of $276.3 billion, while the third-largest, XRP, has a market cap of $145 billion.

Earlier this year, President Donald Trump announced plans to create a Crypto Strategic Reserve. However, details about which cryptocurrencies will be included in the reserve and how it will be funded have yet to be disclosed.

Since taking office, the Trump administration has introduced several crypto-friendly policies. For instance, in 2017, the administration formed a task force under the Securities and Exchange Commission (SEC) to establish clear regulations for the cryptocurrency industry.

Many experts, including Bitwise Chief Investment Officer (CIO) Matt Hougan, believe the reserve will predominantly focus on bitcoin, given its role as the leading cryptocurrency and its potential for value appreciation. Some, like Real Vision founder and hedge fund manager Ben Geswick, suggest it could be a bitcoin-only reserve.

New Hampshire is among several states that are considering legislation to allow state-level treasury investments in bitcoin. Earlier this year, North Carolina lawmakers advanced a bill to permit such investments, while Oklahoma and Texas have also seen similar proposals.

Recently, Utah lawmakers approved a bill setting the stage for bitcoin and cryptocurrency investments by state agencies, and Arizona House members voted to approve a bill that would create a bitcoin trust fund.