New Hampshire Becomes First US State to Allow Bitcoin ReservesPublished on May 6, 2025 {update}

New Hampshire is once again First in the Nation! 🎉

Just signed a new law allowing our state to invest in cryptocurrency and precious metals. pic.twitter.com/ua9bawZKbM

— Governor Kelly Ayotte (@KellyAyotte) May 6, 2025

What Does the New Law Allow?

The new law gives the state treasurer the power to buy Bitcoin and other digital currencies. But there’s a limit. Only cryptocurrencies with a market cap above $500 billion are allowed. Right now, that only includes Bitcoin. Ethereum, the next biggest cryptocurrency, has a market cap of just $220 billion, so it doesn’t qualify yet.

The law also sets a maximum limit of 5% for how much of the state’s money can be invested in these digital assets. This rule is to make sure the state’s investment stays balanced and safe.

All of the crypto assets must be held securely. The law says they must be stored using US-regulated services, like state-controlled multi-signature wallets, qualified custodians, or exchange-traded products. This ensures transparency and protection of public funds.

Why Is New Hampshire Doing This?

The goal of the bill is to diversify the state’s financial reserves. At the same time, it aims to keep things safe and transparent. By investing a small portion in Bitcoin, New Hampshire is trying to prepare for the future of money and finance.

The bill follows a model created by Satoshi Action Fund, a group that supports Bitcoin legislation across the US. The group has helped push forward more than 20 similar bills in different states. Their founder, Dennis Porter, said, “The odds of multiple states passing Strategic Bitcoin Reserve legislation into law just went up by a massive amount today.”

On social media, New Hampshire Republicans celebrated the move. They said the state is leading the way in digital finance, calling it a bold step for the “Live Free or Die” state.

What About Other States?

While New Hampshire moves forward, other states are moving in the opposite direction.

Just a few days before New Hampshire passed the law, Florida stopped its progress on two crypto investment bills. House Bill 487 and Senate Bill 550 were both canceled. These bills were introduced in February and would have allowed up to 10% of certain state funds to be invested in Bitcoin.

Arizona also rejected a similar plan. On May 3, Governor Katie Hobbs vetoed HB 1025. She called digital assets “untested investments.” Even though Arizona still has one more bill, HB 1371, waiting for a vote, it is unlikely that the governor will change her mind anytime soon.

New Hampshire’s new Bitcoin reserve law has set a powerful example for other US states. It shows how governments can explore digital finance while still following strict rules. With this bold step, New Hampshire has opened the door for other states to look at Bitcoin and digital assets as part of public finance.

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