Bitcoin Reserve Bills Advance in New Hampshire and Florida
Legislative efforts are underway in the U.S. as two states move closer to establishing Bitcoin reserves within their financial frameworks.
April 11, 2023 – In a significant advancement for cryptocurrency legislation in the United States, New Hampshire and Florida have made notable strides in their efforts to establish Bitcoin reserves. These developments reflect growing interest in digital assets at the state level, with New Hampshire becoming the fourth state to see a Bitcoin reserve bill pass through one legislative chamber, while Florida’s House Insurance and Banking Committee has also advanced a similar measure.
New Hampshire’s Progress
On April 10, New Hampshire’s House passed Bill HB302 with a close vote of 192 to 179, setting the stage for further deliberation in the state Senate. The bill, if signed into law by Governor Kelly Ayotte, would permit the state treasurer to allocate up to 10% of the state’s general fund and other approved funds towards investments in Bitcoin, silver, gold, and other designated digital assets.
This bill stipulates that only cryptocurrencies with a market capitalization exceeding $500 billion are eligible for investment, a criterion that, as it stands, is met exclusively by Bitcoin. The passage of HB302 positions New Hampshire alongside Arizona, Texas, and Oklahoma, which have already advanced similar Bitcoin reserve bills.
During the debate leading up to the vote, representatives voiced differing opinions on the necessity of the bill. Democrat Representative Terry Spahr expressed concerns that the legislation might prove superfluous given that the state treasurer already possesses the authority to manage state funds in cryptocurrencies. He cautioned about the volatility associated with digital currencies, suggesting that the bill could limit the state’s future flexibility in handling its digital assets.
Conversely, Republican Representative Jordan Ulery advocated for the bill, underscoring the potential financial gains the state could reap from investing in cryptocurrencies like Bitcoin.
In addition to HB302, New Hampshire is also considering two other blockchain-related bills: HB310, which focuses on stablecoins and real-world asset tokenization, and HB639, which centers on blockchain regulation and dispute resolution.
Florida’s Legislative Movement
On the same day, April 10, Florida’s House Insurance and Banking Committee unanimously voted in favor of Bill HB487, which also aims to facilitate investments in Bitcoin. This bill, akin to New Hampshire’s proposal, would empower Florida’s chief financial officer and the State Board of Administration to allocate up to 10% of specific state funds—including the General Revenue Fund—directly into Bitcoin.
The bill’s sponsor, Republican Representative Webster Barnaby, emphasized the urgency of the legislation, asserting that it would position Florida at the forefront of emerging financial technology. The advancement of HB487 is a crucial step, although it still requires approval from three additional committees before it can move to a full House vote.
The bill outlines the security and custody measures necessary for managing investments in digital assets. Notably, it allows investments to be made directly, with qualified custodians, or through exchange-traded products.
The Race for Bitcoin Reserves
These legislative moves highlight a burgeoning interest in digital assets across the United States. Currently, Arizona is in the lead to establish the first state Bitcoin reserve, with two related bills, SB1373 and SB1025, having recently cleared the Arizona House Rules Committee and now awaiting a full House vote. Should they pass, they would require the signature of Arizona’s Democratic Governor Katie Hobbs to become law.
As states adapt to the growing prominence of cryptocurrency, these initiatives signal a broader acceptance and potential integration of digital assets into governmental financial strategies.
Conclusion
The ongoing passage of Bitcoin reserve bills in New Hampshire and Florida illustrates a pivotal moment in state-level cryptocurrency legislation. As these developments unfold, the eyes of the financial world will be watching to see how states navigate the complexities of digital asset investment and regulation.
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