On Tuesday, New Hampshire’s governor signed a bill establishing a cryptocurrency reserve, making it the first state to let its government invest in cryptocurrencies such as Bitcoin.
New Hampshire House Bill 302 “enables the state treasurer to invest state funds into precious metals and digital assets,” allowing the state to invest as much as 5% of its public funds into any digital asset with a market cap over $500 billion.
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Bitcoin is the only digital asset with a market cap that high, hovering just under $2 trillion. The next closest asset, Ethereum, has a market cap of $219 billion, and last had a total valuation over $500 billion in November 2021. Digital assets will be held by the state treasurer using a “secure custody solution” or through an “exchange-traded product.”
“New Hampshire is once again First in the Nation!” Gov. Kelly Ayotte (R-NH) wrote on X, “Just signed a new law allowing our state to invest in cryptocurrency and precious metals.”
Republican state Rep. Keith Ammon is the primary sponsor of the state bill.
“NH IS FIRST IN THE NATION,” NH House Republicans posted on X, “New Hampshire is OFFICIALLY the first state to lay the groundwork for a strategic bitcoin reserve. The Live Free or Die state is leading the way in forging the future of commerce and digital assets.”
Arizona recently passed a crypto reserve bill through both state chambers, but Gov. Katie Hobbs (D-AZ) vetoed it. She criticized it, saying, “Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency.” North Carolina and Texas have passed similar bills through at least one chamber but are still awaiting approval from the second.
Bills related to crypto reserves have been introduced in several other states, such as Georgia and Illinois.
The federal government does not currently have a crypto reserve. Although President Donald Trump signed an executive order establishing the “Strategic Bitcoin Reserve” in March, it is not operational yet.
“For too long our government has violated the cardinal rule that every bitcoiner knows by heart: Never sell your bitcoin,” Trump said during a speech at a Bitcoin conference last July. “If I am elected, it will be the policy of my administration, United States of America, to keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future.”
Congressional Democrats have opposed Trump’s crypto efforts. They are introducing legislation to prevent Trump and lawmakers from sponsoring cryptocurrencies.
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Sen. Jeff Merkley (D-OR) told lawmakers Monday that he will introduce a bill banning presidents, lawmakers, and their families from issuing, endorsing, or sponsoring cryptocurrencies, Axios reported.
He said his bill would “address and curb the corruption that the Trump Administration is potentially engaging in.” In January, Trump launched meme coins called $TRUMP and $MELANIA and plans to create his own Bitcoin ETF.