North Dakota lawmakers have recently introduced a House Concurrent Resolution (HCR) that urges the State Treasurer and the State Investment Board to consider incorporating digital assets and precious metals into the state treasury’s portfolio as a means to hedge against inflation. The resolution, known as HCR3001, is sponsored by six Representatives and two Senators, all of whom are Republican.
The resolution encompasses the state general fund, budget stabilization fund, and legacy fund, with the intention of safeguarding the state’s financial resources against inflation and other uncertainties by advocating for investments in digital assets and precious metals. In an effort to promote transparency, the resolution mandates the Secretary of State to distribute copies of the proposal to the State Treasurer and members of the State Investment Board, underscoring the legislature’s commitment to fostering a more diversified and resilient treasury.
Although the resolution does not impose any concrete actions, its introduction signifies a growing interest among state governments in exploring cryptocurrencies as viable components of public investment portfolios. This move aligns with a broader trend of states across the US considering the incorporation of Bitcoin strategic reserves into their financial planning.
Notably, just a few days later, New Hampshire State Representative Keith Ammon introduced legislation that would allow the state treasury to allocate up to $360 million in cryptocurrency investments. The bill specifies that investments can only be made in cryptocurrencies with a market cap exceeding $500 billion on average over the past 12 months or stablecoins, effectively limiting the options to Bitcoin (BTC) as the sole eligible cryptocurrency for investment.
The New Hampshire bill mirrors the approach taken by the North Dakota legislation, which refrains from explicitly mentioning Bitcoin. According to Dennis Porter, CEO and co-founder of Satoshi Action Fund, who assisted in both projects, certain US states necessitate “tech-neutral bills” that do not explicitly reference Bitcoin.
The initiatives in North Dakota and New Hampshire add to a growing list of US states that are considering or have already implemented Bitcoin strategic reserve plans. Representatives in Pennsylvania and Texas have introduced similar proposals, while Alabama’s State Auditor and Florida’s Chief Financial Officer have also advocated for the establishment of BTC strategic reserves.
In conclusion, the movement towards incorporating digital assets, particularly Bitcoin, into state treasuries underscores a broader shift towards embracing cryptocurrencies as a legitimate asset class for public investment portfolios. This trend reflects a recognition of the potential benefits of diversifying financial resources and hedging against inflation in an increasingly digital and uncertain economic landscape.