Woofun AI reports that New Hampshire’s executive council blocked the issuance of $100 million in Bitcoin-backed bonds, rejecting a proposal championed by Governor Kelly Ayotte and the New Hampshire Business Finance Authority (BFA). This decisive move halts a significant state-level digital asset initiative, signaling a retreat from aggressive crypto adoption strategies despite high-level political support.

The rejection occurred during a Wednesday hearing, where the five-member panel cast a 3-2 vote against the BFA’s plan, which had been approved by the authority in November 2025. Councilors Karen Liot Hill, Dave Wheeler, and Janet Stevens opposed the measure, while Joseph Kenney and John Stephen voted in favor. State representative Keith Ammon criticized the outcome in a Thursday X post, calling it "extremely short-sighted" and urging a reconsideration based on comprehensive facts. The proposed bonds, backed by Bitcoin collateral provided by CleanSpark, were intended to follow New Hampshire’s May 2025 crypto reserve law. Moody’s had assigned the bonds a provisional Ba2 rating in March, indicating moderate credit risk.

Woofun AI data shows that while the crypto industry largely supported the initiative, experts warned of "substantial risk" to New Hampshire residents. The divergence in opinion underscores the tension between innovative financial instruments and public fiscal safety. Critics argue that exposing state funds to volatile digital assets could jeopardize taxpayer security, a concern that likely influenced the dissenting councilors.

This decision unfolds against a broader backdrop of regulatory uncertainty, as US states increasingly challenge prediction market platforms like Kalshi and Polymarket. Some speculate New Hampshire may join legal battles against the Commodity Futures Trading Commission (CFTC) over jurisdiction. State Senator Tim Lang planned to introduce legislation restricting these markets in April, yet as of Friday, the platforms remained operational in the state.