North Dakota and New Hampshire have joined the list of US states that are passing laws to establish Bitcoin reserves.
The move reflects a growing effort to diversify state coffers in the face of economic challenges such as inflation.
Bitcoin Reserve Bill Gaining Momentum in the United States
The legislature in North Dakota has introduced a proposal to integrate digital assets and precious metals into the state’s investment strategy. Resolution HCR 3001 directs the State Treasurer and Board of Investment to allocate a portion of key state funds — such as the general fund and legacy funds — to these alternative assets.
“The Legislative Conference encourages the State Treasurer and the State Investment Council to invest a portion of the state general fund, budget stabilization fund, and legacy fund in digital assets and precious metals,” the bill said. stated clearly.
While the resolution does not explicitly name Bitcoin, the inclusion of the digital asset demonstrates growing interest in cryptocurrencies as a viable investment. Supporters believe this approach can protect state finances from economic pressures such as inflation.
Lawyers have introduced similar legislation in New Hampshire to establish a state Bitcoin reserve fund. Although the bill does not directly mention Bitcoin, the attached condition suggests that the leading cryptocurrency will be the only one eligible for investment.
The law stipulates that only digital assets with a market capitalization of over $500 billion in the past year or Stablecoins are eligible. Indeed, Bitcoin is the obvious candidate as the only asset in that range.
Meanwhile, the lack of the name Bitcoin in both proposals has caused debate in the cryptocurrency community. Critics see this as a loophole to include other assets. However, supporters say this is a deliberate tactic to avoid political opposition.
Dennis Porter, a strong advocate of pro-Bitcoin policies, explains that technology-neutral laws often pave the way for smoother policy adoption. This approach ensures that lawmakers feel confident in approving measures without unnecessary controversy.
“Some states asked us to develop tech neutrality bills, and that’s very common in policy. That’s the way to reduce political friction. Some bills will focus on Bitcoin, some will be based on market capitalization. We work with lawmakers to ensure they are confident the bill will pass. We have used this technology neutral strategy for many years and it works,” Porter explain.
The introduction of these bills fits into a broader trend among US states, including Texas, Florida, Pennsylvania and Alabama, in exploring Bitcoin reserves. These efforts appear to be inspired by President-elect Donald Trump’s proposal to establish a national Bitcoin reserve.
Currently, the United States government holds about 200 thousand BTC, valued at more than 18 billion USD, making it the largest Bitcoin holder globally. However, the administration of outgoing President Joe Biden received approval to liquidate 69,370 BTC seized from the Silk Road market, worth approximately $6.5 billion.
Matt Hougan, CIO of Bitwise, propose that the incoming administration may repurchase Bitcoin as part of a broader strategy to strengthen the country’s financial position in the global cryptocurrency landscape.
