New Hampshire has joined other states seeking a Bitcoin cash reserve with a bill touted as a path to sovereignty.
New Hampshire Rep. Keith Ammon filed a proposal to activate the BTC cash reserve.
The Republican politician submitted a proposal on Friday to require the Treasury to invest a portion of public funds in precious assets and metals.
Steps to Bitcoin Reserve
Approval of the proposal would protect Granite State funds from runaway inflation. Ammon added that adopting the Bitcoin reserve would align with the cultural values of Hampshire residents.
Ammon reiterated that the New Hampshire philosophy stipulates small interruptions. He cited that Live Free or Die requires that the state not burden residents with excessive regulation.
Ammon acknowledged existing ties to the U.S. dollar. Although such links are not optional, the legislator observed the possibility for the State to allocate part of the funds to the decorrelated asset class.
The text of the bill reveals that the state treasurer is able to allocate funds for precious metals, including gold and platinum. This capability is extended to digital assets.
Allocation to digital assets is only permitted to those whose market capitalization exceeds the average of $500 billion over the previous calendar year.
The conditions stipulated in the proposal make Bitcoin the only digital asset that state treasurers can currently engage in.
New Hampshire Adds Crypto Assets to Public Fund Investments
The bill allows the treasurer to undertake staking or lending with the crypto assets. This language appears to refer to the process by which users of proof-of-stake (POS) networks, including Solana and Ethereum, earn rewards.
However, the amount of investment must remain within the limit of 10% of public funds. The annual report shows Treasury holdings stood at $3.6 billion as of June 30.
Ammon’s bill shares the views of President-elect Donald Trump, who has urged the creation of the Bitcoin Strategic Reserve (BSR). Trump promised in July last year to create the BSR during his speech at the Bitcoin conference in Tennessee.
Trump urged attendees at the Bitcoin 2024 conference in Nashville to never liquidate their BTC holdings. The future 47th president, during his inauguration on January 20, indicated that the United States would create a stock of Bitcoin.
Trump advocated at the last summer conference that Bitcoin seized by US authorities would create a stockpile. Right after Trump’s statement, Wyoming Senator Cynthia Lummis introduced the Bitcoin Act bill. The proposal requires the Treasury to acquire up to 1 million Bitcoins over five years and hold them for two decades.
States approve Trump’s Bitcoin reserve idea
While crypto entrepreneurs including former BitMEX chief Arthur Hayes question Trump’s creation of the Bitcoin reserve, a paced process is evident at the state level.
As in New Hampshire, Representatives from Texas, Ohio and Pennsylvania are debating bills to establish the BTC strategic reserve.
Ammon reflected on the process of integrating Bitcoin into New Hampshire’s balance sheet. The lawmaker admitted to having a brief conversation with state Treasurer Monica Mezzapelle about the bill. He admitted to not knowing whether the treasurer was in favor of the idea of the BTC reserve.
Mezzapelle has not yet provided further details on his views on the bill. She indicated that she had not yet reviewed the text of the proposal.
Since 1920, the state of New Hampshire has held the first presidential primary to allow voters to choose party candidates before other states. Ammon believes that in this sense, the state deserves to have the opportunity to create Bitcoirve first.
Ammon added that the state that delays building Bitcoin reserves will ultimately lose. He stressed the urgency for States to act sooner. This nevertheless implies raising awareness among state agents involved in the exercise.
Meanwhile, North Dakota lawmakers introduced Resolution 3001, which aimed to select public funds to invest in precious metals and crypto assets.
Resolution 3001 aims to reduce inflationary threats to North Dakota’s finances by diversifying investments across various asset classes.
Senators Bob Paulson and Jeff Barta support Resolution 3001. Representatives Todd Porter, SuAnn Olson, Matthew Heilman, Daniel Johnston and Nathan Toman also support the proposal.
