Efforts to create state-owned Bitcoin reserves are gaining momentum in the United States, with New Hampshire and Florida taking significant steps in that direction. New Hampshire’s House of Representatives recently approved House Bill 302 with a narrow vote, giving the state treasurer authority to allocate up to 10% of state funds into digital assets and precious metals, with strict guidelines on minimum market capitalization. The bill also outlines custody requirements for digital assets, ensuring secure storage either through the state treasurer, a qualified custodian, or a registered exchange-traded product.
New Hampshire joins Arizona, Oklahoma, and Texas as one of the few states to pass legislation allowing for state-owned Bitcoin reserves. In a similar move, Florida’s Strategic Bitcoin Reserve bill HB487 has also made progress, with bipartisan support in the state’s Insurance and Banking Subcommittee. The bill highlights Bitcoin as a hedge against inflation and aims to give the state access to tools to protect its finances. Representative Webster Barnaby, the bill’s sponsor, sees this as an opportunity for Florida to lead in digital finance, with clear custody guidelines and investment options included in the proposal.
The push for state-owned Bitcoin reserves comes amid increasing interest from sovereign states and major institutional players like BlackRock and Franklin Templeton in using Bitcoin as a hedge against inflation. Proponents believe that by investing in Bitcoin, states can safeguard their finances and potentially generate returns in the long term. While concerns about digital asset volatility and risk exposure have hindered similar proposals in the past, the recent progress in states like New Hampshire and Florida reflects a shift towards greater acceptance of cryptocurrencies in mainstream finance.
As more states consider legislation to create Bitcoin reserves, the cryptocurrency market could see significant growth and adoption in the coming years. State-owned reserves could potentially boost Bitcoin’s credibility as an asset class and encourage other institutions to invest in digital assets. With clear guidelines on custody and investment options, states like New Hampshire and Florida are paving the way for a new era of cryptocurrency adoption in traditional finance. By taking steps to incorporate Bitcoin into their financial portfolios, states are positioning themselves to benefit from the potential long-term value appreciation of digital assets.
