New Hampshire’s House Bill 302 (HB302), which could make the state one of the first in the U.S. to allocate state treasury funds to Bitcoin (BTC) and precious metals, is advancing with significant bipartisan support. The bill, which was approved by the Commerce and Consumer Affairs Committee on March 5 with a 16-1 vote, is now set to move forward to the full House. If passed, the legislation would allow the state treasurer to invest up to 10% of public funds in gold, silver, platinum, stablecoins, and digital assets that meet specific market capitalization thresholds.

HB302 represents a shift in state investment strategies, signaling a growing interest in alternative assets among institutions. The bill’s passage in committee has garnered attention from various cryptocurrency policy groups, including Dennis Porter, CEO of the Satoshi Act Fund, who praised the bill’s sponsor, Representative Keith Ammon, for his leadership.

The bill outlines a cautious approach to state investments, setting a cap of 10% of state funds to limit risk while allowing exposure to alternative assets like Bitcoin and precious metals. For Bitcoin and other digital assets, only those with a market capitalization exceeding $500 billion are eligible for investment. This ensures that investments are made in well-established cryptocurrencies, avoiding speculative tokens.

HB302 also includes strict security provisions for managing Bitcoin and precious metals. For digital assets, the bill requires that they be stored through one of three approved methods: direct state custody, qualified custodians, or exchange-traded products. Direct custody would involve the government holding exclusive control over cryptographic keys, with multi-party governance for transaction approvals. Regular security audits and encrypted environments are mandated to prevent cyber threats. Similarly, precious metals would be stored in state-controlled vaults or by trusted custodians.

Unlike Montana’s failed Bitcoin reserve bill, which included similar provisions but was rejected in February, New Hampshire’s approach balances potential gains with rigorous risk management. The 10% investment cap offers a measured approach to alternative assets, ensuring taxpayer funds are not overly exposed to high volatility.

The bill’s passage in the committee stage is a positive sign for supporters of cryptocurrency adoption in government finance, but the path forward remains uncertain. While New Hampshire’s approach is unique in its focus on Bitcoin as a strategic reserve asset, the bill still faces further legislative review. The placement of HB302 on the Consent Calendar increases the likelihood of a swift vote in the full House, but the final decision will rest with both the House and Senate.

Should HB302 become law, New Hampshire could lead the way for other states considering similar policies. The bill also allows the state to generate yield from its Bitcoin holdings through lending or staking, reflecting a sophisticated understanding of digital asset markets. The state’s move aligns with recent federal developments, including the U.S. Senate’s vote to repeal the IRS’s controversial DeFi broker rule, a decision backed by the White House.

As markets continue to evolve, the outcome of HB302 will likely have broader implications for the future of Bitcoin and cryptocurrency adoption in government finance. If passed, it could set a precedent for other states to follow, accelerating Bitcoin’s integration into the financial systems of state governments.