Senate Ways and Means backs bill to let treasurer invest small share of certain digital assets and precious metals

The Senate Ways and Means Committee heard public testimony and then placed House Bill 302 on consent, recommending that the state treasurer be allowed to invest a limited portion of certain long-term state trust accounts in qualifying digital assets and precious metals.

Representative Keith Hammond, the House prime sponsor, told the committee the bill is "enabling" and would give the treasurer additional tools to protect purchasing power: "This bill allows the state treasurer some more tools in the toolbox, not to second guess her judgment," Hammond said. The bill sets eligibility thresholds and custody rules: digital assets would have to meet a high market-capitalization threshold (an average market cap of at least $500 billion over the prior calendar year, the sponsor said) and an investment ceiling limiting allocations to a small percentage of a portfolio.

Committee witnesses described the scope and safeguards. Deputy Treasurer Lauren Warner said qualifying accounts would be long-term trust funds, not general operating cash or the rainy-day fund, and would be assessed against the treasury's priorities of safety, liquidity and return. "Accounts that could qualify for this bill would essentially be some of our state trust funds accounts that are required to remain in perpetuity," Warner said, adding that the treasurer would not use short-term operating funds or the rainy day fund for these investments.

The New Hampshire Bankers Association's Ryan Hale asked the committee to consider emerging federal rules and to include safeguards such as collateralization requirements to preserve consistency with protections that banks already provide for state funds. He also cautioned the committee to consider the economic effect if public deposits are reallocated away from in‑state banks that use those deposits for lending to local businesses.

Representative Hammond and other witnesses said the bill limits risk by (1) restricting eligible assets to highly capitalized digital assets, (2) permitting custody by qualified custodians (including state- and federally-chartered banks), and (3) capping allocations (the amended version sets a 5 percent ceiling; proponents said the treasurer reviewed the amended cap). "BlackRock recommends a 2% allocation into Bitcoin because it's an uncorrelated asset," an advocate testified during Q&A, and supporters said the exposure would be small and optional.

Committee action: after public and stakeholder testimony, the committee voted to place HB 302 on consent. Committee members noted it is enabling language and not a mandate; the treasurer would decide whether to use the new authority and how to implement it. The committee's consent vote was recorded as 5–0 in favor during the session.