New Hampshire Blockchain Council introduces House Bill 302 for state treasurer's investment in crypto

New Hampshire's Senate Ways and Means Committee has taken a significant step towards modernizing the state's investment strategy by advancing House Bill 302, which would allow the state treasurer to invest in digital assets and precious metals. This legislation aims to provide the treasurer with additional tools to combat inflation and enhance the state's investment portfolio.

Currently, the treasurer is limited to a narrow range of ultra-safe assets that often fail to keep pace with inflation. House Bill 302 seeks to change that by enabling investments in established digital assets, specifically those with a market capitalization of at least $500 billion, such as Bitcoin. The bill sets a cap of 5% on the total amount that can be allocated to these investments, ensuring a cautious approach to this emerging asset class.

The bill has garnered bipartisan support, having passed through the House Commerce Committee and the full House without debate. However, it faced a more divided response in the Senate, reflecting concerns about the implications of investing public funds in volatile digital assets. Proponents argue that the bill is a necessary adaptation to protect taxpayer dollars from inflation, while critics caution against potential risks associated with such investments.

During the meeting, committee members discussed the importance of maintaining safety, liquidity, and return on investments, which are the treasurer's guiding principles. The treasurer's office indicated that the bill would not mandate investments in digital assets but would provide the option to do so if deemed beneficial.

The New Hampshire Bankers Association expressed caution, highlighting the potential impact on local banks and the economy if public funds are diverted from traditional banking institutions to digital assets. They emphasized the importance of ensuring that public deposits continue to support local lending and investment.

As the bill moves forward, it reflects a growing recognition of the need for state investment strategies to evolve in response to changing economic conditions and emerging asset classes. The committee's discussions underscore the balancing act between innovation and prudence in managing public funds. The next steps will involve further deliberation and potential adjustments to the bill as it progresses through the legislative process.