In a historic move for both state governance and the broader cryptocurrency market, New Hampshire has officially become the first U.S. state to pass legislation establishing a strategic Bitcoin reserve.

Signed into law last week, House Bill 1640 directs the state’s Treasury to explore acquiring and securely holding Bitcoin as part of a broader investment diversification strategy. The decision reflects growing bipartisan interest in integrating decentralized finance into public fiscal policy.

The legislation, sponsored by Republican Rep. Keith Ammon and passed with bipartisan support, mandates the state to:

• Investigate the creation of a Bitcoin reserve within the state treasury.
• Develop a secure custody framework for holding the digital asset.
• Assess legal, regulatory, and financial risks associated with the reserve.
• Report findings and strategic recommendations by November 2024.

While the law stops short of an immediate Bitcoin purchase, it formalizes the state’s intent to treat Bitcoin as a long-term store of value, akin to gold or other strategic assets.

This is the first time any U.S. state has codified the concept of a Bitcoin reserve into law. With this move, New Hampshire sets a precedent for:

• Government-level adoption of digital assets.
• State-run diversification away from fiat-only reserves.
• Exploration of decentralized finance (DeFi) as a tool for fiscal resilience.

“We’re witnessing a monetary evolution, and states like New Hampshire are preparing to adapt,” said Ammon. “Bitcoin offers a hedge against currency devaluation and federal overreach.”

New Hampshire’s crypto-friendly reputation has been growing in recent years, bolstered by its Free State Project and libertarian-leaning policies. The state already exempts digital asset mining from sales tax and recognizes blockchain-based records.

This legislation builds on that momentum, potentially setting the stage for other forward-looking states like Texas, Wyoming, and Florida to follow suit.

Skeptics warn that volatility, regulatory uncertainty, and custody challenges could make such reserves risky. Others argue that the initiative reflects strategic foresight in a global financial system where sovereign digital assets are increasingly relevant.

Regardless of its final implementation, New Hampshire’s action marks a turning point in the interplay between state policy and decentralized technology.

“This is a watershed moment for Bitcoin adoption in government finance,” said a spokesperson from the Satoshi Action Fund, which supported the bill. “We expect other states to now consider similar frameworks.”

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