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Legislators’ efforts to establish state-level strategic BTC reserves have gained momentum following the passing of Bitcoin Reserve Bills in New Hampshire and Florida. The bills aim to allow their respective governments to hold BTC as part of their financial reserves.
According to the New Hampshire LegiScan, the House passed Bill HB302 with a narrow win of 192-179 votes, allowing the legislation to move to the Senate for further debate. Should the Senate approve the proposal and Governor Kelly Ayotte signs it into law, the Treasury will allocate up to 10 percent of its general fund and other approved funds to digital assets and precious metals.
Only Bitcoin Meets the Criteria
Bill HB302 explicitly states that the only digital assets eligible are those with a market capitalization of over $500 billion, meaning that only Bitcoin currently meets the criteria during the debate discussing the Bitcoin Reserve bills, Rep.
Terry Spahr suggested that the bill was unnecessary as it could undermine the future security of the state’s cryptocurrency stockpile. In supporting the bill, Republican Representative Jordan Ulery stated that the legislation could help the state earn significant returns through strategic crypto investments. Spahr said:
“Unbeknownst to the committee and the sponsor […] the treasurer testified that they already have that authority […] “(cryptocurrency) is constantly shifting and changing, and it’s sort of dangerous to be kind of locked into certain types of security measures, and I think that bill does this.”
Bills Await Full House Votes
If passed into law, New Hampshire will join Arizona, Texas, and Oklahoma as states where Bitcoin Reserve bills have gone through at least one legislative chamber. The state’s legislators are discussing two other blockchain-related bills: HB310, relating to stablecoins and real-world assets, and HB639, relating to blockchain regulation and dispute resolution mechanisms.
As the race for Bitcoin Reserve bills intensifies, Florida has also made progress with their state’s House Insurance and Banking Committee unanimously passing HB487. The bill aims to allow Florida’s Chief Financial Officer and the State Board of Administration to invest up to 10% of select funds into Bitcoin.
According to the law, the bill must go through at least two more committees before it can be put through the entire House vote. Rep. Webster Barnaby, who sponsored the bill, describes it as a chance to place the state at the forefront of digital financial innovation.
Florida Bill Has Additional Details.
The proposal in the Bill has an additional provision detailing how cryptocurrencies could be managed, including direct investment using qualified custodians and exchange-traded products. The Florida House is pursuing two additional bills: SB 1373 and SB 1025. These bills have cleared the House Rules Committee and await a floor vote before becoming law.
Conclusion
As the race to discuss state Bitcoin Reserve bills intensifies, data from legislative tracker Bitcoin Laws reveals that Arizona currently leads the pack of states pursuing formal Bitcoin reserves. The state is closely followed by Texas, Oklahoma, New Hampshire, and Florida.
Frequently Asked Questions (FAQs)
What is a Bitcoin reserve?
A Bitcoin reserve is a government-owned and operated stash of crypto coins, similar to stores of gold or oil.
Why are US state governments interested in this?
Proponents argue that Bitcoin could help states diversify their financial portfolios. Many people now see Bitcoin as a hedge against inflation because its price fluctuates independently from most fiat currencies.
How do the different states plan to buy Bitcoin?
The Bitcoin reserve bills from different states propose different strategy ideas, including selling off other assets, reallocating existing funds, or asking for donations.
How would state reserves impact the price of Bitcoin?
Should different states begin to establish Bitcoin reserves, its price will increase dramatically because states buying large amounts of Bitcoin over several years would decrease the supply.
Appendix: Glossary to Key Terms
Strategic Reserve: A commodity, such as intervention stocks of food or petrol, or any other asset, such as the strategic petroleum reserves in the US.
Bill: A form or draft of a proposed statute presented to a legislature but not enacted, passed, or made law.
