New Hampshire Pioneers State Investment in Cryptocurrency
This month, New Hampshire has made history by becoming the first state in the United States to authorize its treasury to invest in cryptocurrency. The newly enacted law, which proponents are dubbing a “state bitcoin reserve,” is relatively conservative in its approach; it allows the state treasurer to allocate up to 5% of state assets to bitcoin and gold, although it does not mandate such investments. This initiative is part of a larger effort led by State House Republicans to position New Hampshire as a favorable environment for cryptocurrency investors and developers, encouraging activities like mining and resolving legal issues. “I think New Hampshire has really earned the title of ‘the granite cradle of crypto,’” stated Eric Brakey, Executive Director of the Free State Project, highlighting the enthusiasm around this movement.
Creating a New Economic Landscape
Key figures in New Hampshire, including House Majority Leader Jason Osborne, view cryptocurrency as a significant opportunity to reshape the state’s economic landscape. Osborne expressed ambition for New Hampshire to become a new hub for economic growth akin to Delaware, which is known for being the incorporation state for numerous Fortune 500 companies. His comments were made during a recent interview on X, where he was joined by Brakey and Representative Keith Ammon, the principal author of the new legislation. The discussion was moderated by local bitcoin advocate Bruce Fenton and included insights from Dennis Porter of the Satoshi-Action Fund, a national organization that promotes cryptocurrency-friendly legislative changes. Porter expressed hope that New Hampshire’s leadership could inspire similar laws in other states.
A Home for Cryptocurrency Advocates
The conversation surrounding cryptocurrency in New Hampshire also served as a rallying point for members of the Free State Project, the libertarian organization that has attracted many cryptocurrency supporters to the state. Representative Ammon emphasized his dedication to improving legislation in Concord by adopting a “New Hampshire first” mindset, referring to the state as a cherished home that deserves care and attention.
Legislative Efforts Against Discrimination of Digital Assets
While the state investment bill made headlines, several additional pro-cryptocurrency measures are currently under consideration in the New Hampshire State House. One notable proposal, introduced by Ammon, aims to serve as an “anti-discrimination” measure, which would prevent the state from limiting the use of digital assets. This legislation would also prohibit state authorities from imposing regulations specific to blockchain enterprises. Environmental concerns regarding the energy consumption and noise from bitcoin mining have sparked debates in other states, and similar issues are being raised by activists in New Hampshire.
Legal Frameworks for Blockchain Innovations
The proposed legislation also seeks to establish new legal definitions for various blockchain-related terms and create a specialized court docket for blockchain-related disputes. A significant aspect of the bill asserts that businesses engaged in cryptocurrency “mining” and “staking” should not be classified as offering securities or investment contracts, a change that has met resistance from state securities regulators. Concerns stem from the belief that such a change could hinder the regulators’ ability to safeguard New Hampshire investors.
Exploring New Opportunities in Cryptocurrency
Another prominent blockchain bill under consideration would form a study commission tasked with examining multiple topics, including stable tokens—digital assets linked to commodities or currencies—and the tokenization of real-world assets such as real estate or art. Additionally, the commission would look into the creation of blockchain-based trusts. Other legislative initiatives related to energy production are also in progress, including a proposal that defines “off-grid electricity providers” as those generating power independently from existing infrastructure, which could exempt them from certain state regulations.
Regulatory Considerations from State Leadership
The future of New Hampshire’s cryptocurrency-related legislation remains uncertain. Governor Kelly Ayotte, who was present at the signing of the state “crypto reserve” bill, emphasized the need for regulatory oversight in the realm of blockchain currencies. “We would welcome economic activity with crypto, but it’s essential to have guardrails in place,” Ayotte remarked to reporters. Concord attorney Bill Ardinger, a regulatory expert who previously led a commission on cryptocurrency, echoed her sentiments, stressing the importance of a well-defined legal framework for the practical application of blockchain technology.
A Growing Ecosystem for Cryptocurrency
Despite the uncertainties regarding regulatory frameworks, supporters of cryptocurrency in Concord are optimistic about the potential for growth. House Majority Leader Osborne noted that the initiatives being developed for new energy production and financial institutions could make New Hampshire a vibrant center for innovation. In fact, developments are already underway, as state bank regulators recently approved a charter for the cryptocurrency exchange Crypto.com to operate in New Hampshire as a non-depository trust company.
Reflecting on the Journey of Cryptocurrency
For advocates of bitcoin in New Hampshire, the recent legislative progress marks a significant departure from the early days of their engagement with cryptocurrency. In a recent discussion on X, Fenton, Osborne, and Ammon reminisced about their first encounters with bitcoin at Free State Project events such as Porcfest, recalling a time when bitcoin had little financial value. “I remember purchasing a bag of ice for a bitcoin, at one point,” Osborne recounted, demonstrating how far the cryptocurrency landscape has come since its inception.
