Cryptocurrency surges past $99,000 value: Legislative moves by two American states to establish Bitcoin reserve funds
In a significant move for cryptocurrency adoption, New Hampshire has become the first US state to actively create a Bitcoin reserve. The decision was made possible by the signing of HB 302 into law by Governor Kelly Ayotte on May 6.
The law allows the government to establish a strategic reserve in precious metals or digital assets. The reserve is fed by "airdrops, staking income, or interest" on "unclaimed property", such as seized cryptocurrencies, uncashed checks, dividends, bonds, and unclaimed insurance payments.
The investment limit is set at 5% of public funds, which amounts to almost $65 billion in New Hampshire. The Treasurer is to transfer 10% of all digital assets that the state owns into the reserve, but the wording is somewhat unclear.
The news provides banks with legal certainty when dealing with cryptocurrencies and a basis for developing formal rules for secure custody. Comptroller Rodney E. Hood confirmed that banks can hold cryptocurrencies for themselves or on behalf of customers, subject to certain conditions. The Office of the Comptroller of the Currency has given national banks and federal savings associations the green light to hold cryptocurrencies.
The creation of the Bitcoin reserve in New Hampshire is not the only cryptocurrency-related development in the US. Arizona introduced two bills to create a Bitcoin reserve, one of which, SB1025, was vetoed by Senator Katie Hobbs. A scaled-down version, HB2749, was signed by the governor.
Besides New Hampshire and Arizona, the search results do not explicitly mention other specific US states that are planning to create Bitcoin reserves, though there is active political discussion in the US federal government and interest from various parties in establishing state-level or national Bitcoin reserves.
The Satoshi Action Fund claims to have contributed to the creation of the New Hampshire Bitcoin reserve. Bitcoin's price reacted to the news, with a steady rise since early April; yesterday, the increase accelerated from around 94,000 dollars to its current 99,750 dollars.
The law allows investment in gold, silver, Bitcoin, Ethereum, or platinum if their market capitalization exceeds $500 billion and their price remains above $1,000. With the price increase, the chance to buy Bitcoin under 100,000 dollars may soon be gone.
This development marks a significant step forward in the acceptance and legitimization of cryptocurrencies in the United States. As more states and the federal government consider similar moves, we can expect to see a growing trend towards integrating cryptocurrencies into traditional financial systems.
