New Hampshire Rejects $100 Million Bitcoin-Backed Bond Proposal, Republican Lawmaker Slams Short-Sightedness

Coin Circle (120btc.CoM): The Executive Council of New Hampshire voted 3-2 on Wednesday to reject a $100 million Bitcoin-backed bond proposal put forth by the state's Department of Business and Financial Services. This deal was intended to make New Hampshire the first U.S. state to issue bonds backed by BTC, but it was ultimately voted down at the last hurdle.

5 Members Voted, 3 Said No

Among the five members of the Executive Council, Karen Liot Hill, Dave Wheeler, and Janet Stevens cast votes against the proposal; Joseph Kenney and John Stephen supported it. In response to the outcome, Republican lawmaker (current majority whip) from New Hampshire's House of Representatives expressed outrage, stating that the decision means a future re-vote: "The Executive Council's decision yesterday stifles the revenue that the Business and Financial Services Department could have gained from all future potential bond pipelines, which harms our economic growth. This is an extremely short-sighted decision. I cannot believe I witnessed this."

Where Did the Proposal Come From?

The state’s Department of Business and Financial Services approved this investment plan back in November 2025, with cryptocurrency mining company Clean Spark providing BTC as collateral, while the state government would issue $100 million in bonds. New Hampshire Governor Kelly Ayotte also expressed support for the proposal.

This investment is another concrete action to advance digital asset policy following the state’s passage of the "Bitcoin Reserve Act" in May 2025.

Experts Warn: Bitcoin Bonds Also Carry Risks

Although many in the crypto industry endorsed the proposal, some experts warned that the deal carries "substantial risks"; if the price of BTC drops significantly and collateral is insufficient, the tax dollars of New Hampshire residents could be affected. Rating agency Moody's assigned a temporary rating of Ba2 to the bond in March, which is considered "below average" investment grade, lower than the typical AAA rating for government bonds.

However, this rejection does not mean the plan is over; the Executive Council can re-vote at the next meeting. Nevertheless, it also shows the market that there is still a distance to cover for Bitcoin to transition from a "reserve asset" to "actual collateral."

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