The Block: Looking to run a blockchain app in a US-regulated state? Maybe consider New Hampshire

New Hampshire is ramping up to play a leading role in blockchain technology following the release of a final report with recommendations to devote resources to establish legal regimes to attract innovators, entrepreneurs and businesses.

The state should take strong proactive and public steps to build a better legal system for the development of blockchain technologies, the governor’s Commission on Cryptocurrencies and Digital Assets said in a 67-page report.

“This report is comprehensive and timely, providing specific recommendations that would establish New Hampshire as a leading jurisdiction for the development of sound and effective applications of blockchain technologies, including proposals to clarify current laws and to support law enforcement in its efforts to protect New Hampshire consumers and investors,” said Republican Governor Chris Sununu said in a statement.

States scattered across the U.S. have enacted their own laws to regulate blockchain and crypto as the federal government weighs how to regulate it at the federal level. States such as Arizona and Alaska require some entities to get money transmitter licenses, according to a post from Bloomberg Law. New Hampshire is looking to attract new businesses by offering clear regulations.

Sununu issued an executive order to create the state’s Commission on Cryptocurrencies and Digital Assets last year. The governor then tasked the commission with offering findings and recommendations on the role of the state’s legal system, blockchain technology and the impact on consumers.

The commission did not gloss over major disruptions in the cryptocurrency industry in 2022 and said some aspects of the technology may render them to be “effective vehicles for fraud.” The industry is still reeling from the collapse of Three Arrow Capital and FTX last year, among other outfits.

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