NH Senate Approves Bill 302, Which Would Allow the State to Invest in Bitcoin and Other Cryptocurrencies

The New Hampshire Senate has been considering Bill 302, which would allow the state to incorporate precious metals and cryptocurrencies like Bitcoin into its financial strategy.

As part of a broader effort to adjust the state’s financial strategy, the New Hampshire Senate is considering a bill that would allow the state to incorporate precious metals and cryptocurrencies like Bitcoin into its treasury management.

The bill, which has now passed the second Senate committee and is set for a full Senate vote, would permit the state’s treasurer to divest a part of the resources from traditional financial options to digital assets and precious metals.

The proposed law, which began its journey in January at the House Commerce and Consumer Affairs Committee, would allow the state’s treasury to invest up to 10% of its funds in cryptocurrency, but only assets with a market cap over $500 billion, like Bitcoin, would qualify.

The bill went to the full House on April 10, where it passed with a 192-179 vote. The second Senate committee reviewed House Bill 302 on April 23 and approved it with a 4-1 vote. If the full Senate approves, it will then go to the governor for final approval.

Two Sides of the Coin

Some, including Democratic Representative Terry Spahr, believe the bill should not have been considered.

“I don’t think we needed to be looking at this bill at all,” Spahr said.

According to Spahr, the state treasurer already has the authority to manage the state’s finances, and the bill could impact New Hampshire’s digital asset holdings.

However, Republican Representative Jordan Ulery, a supporter of the bill, believes that investing in cryptocurrency could benefit the state’s treasury by generating significant returns.

“This bill is a small step in the right direction,” Ulery said.

According to Ulery, the state’s treasury currently invests in U.S. Treasury bonds and other low-yield assets. He believes that allocating a portion of the treasury’s assets to cryptocurrency could be a valuable addition to the investment portfolio.

“We could be generating a lot more revenue for the state with a small part of our portfolio in crypto,” Ulery said.

The bill went to the second Senate committee after being approved by the first committee with a 3-2 vote. It is now set for a full Senate vote.

Other Crypto Policies in Focus

Aside from the state-level bill, other crypto policies are also being discussed at the state level.

House Bills 310 and 639 are on the agenda for the next session, which begins on April 22. These bills focus on stablecoins, tokenized real-world assets, and blockchain regulations.

In the meantime, Illinois has made progress with its Digital Assets and Consumer Protection Act, aiming to prevent crypto scams and fraud. The bill, which passed the House in February, is now set for a vote in the Senate.

The legislation seeks to safeгард users of digital assets from fraud, theft, and other forms of abuse. It also aims to ensure that the state’s administrative agencies have the authority to effectively oversee digital asset activity within the state.

The bill defines digital assets broadly to encompass cryptocurrencies, stablecoins, and tokenized securities. It also grants the state’s securities regulator the authority to oversee digital asset exchanges.

The bill is part of a broader effort by state lawmakers to regulate the rapidly evolving cryptocurrency industry.

International Developments in Crypto

In South Korea, presidential candidate Hong Joon-pyo is pushing for crypto deregulation and blockchain growth.

According to a report by TokenPost Korea, Hong, the presidential candidate for the People Power Party, visited the Global Blockchain Federation on April 16 to discuss his plans for the crypto industry.

During his visit, Hong emphasized the importance of deregulation to foster innovation in blockchain technology. He also highlighted his vision for boosting innovation through disruptive technologies like blockchain, AI, and quantum computing.

According to Hong, these technologies are crucial for Korea’s future in the face of growing economic challenges from China, Japan, and Southeast Asian countries.

“We need to create an environment where people are not afraid to innovate and take risks,” Hong said.

The presidential candidate also touched upon the issue of crypto investment losses, noting that many young people have suffered setbacks due to excessive enthusiasm for cryptocurrency.

However, Hong believes that such experiences are part of the learning process, and they will lead to a better understanding of digital assets.

“We need to move beyond the fear of loss and focus on the potential of this new technology to solve some of the world’s most pressing problems,” he said.

Hong’s vision for a deregulated and innovative Korea aligns with his broader political agenda, which focuses on reducing government intervention in the economy and promoting free market principles.