New Hampshire becomes the first US state to allow Bitcoin investments through its government treasury.
The new law limits crypto holdings to five percent of total state funds for safer financial management.
The state will invest only in cryptocurrencies with a market cap over five hundred billion to reduce risk.
New Hampshire has become the first U.S. state to authorize government investment in Bitcoin and other large cryptocurrencies. Governor Kelly Ayotte signed House Bill 302 into law after it passed both legislative chambers. The revised law enables state treasury managers to invest in cryptocurrencies that exceed $500 billion in market value.
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Currently, only Bitcoin meets the threshold, which filters out smaller or unstable tokens. The law also permits investments in precious metals.
Bill Sets 5% Limit on Crypto Holdings
The legislation limits the total value of crypto holdings to 5% of the state’s total funds. This measure aims to manage financial risk while diversifying investment options for the treasury.
The law requires that digital assets be stored with a U.S.-regulated custodians. These include state-managed multisig wallets, qualified custodians, or exchange-traded products. Officials structured the bill to ensure transparency, security, and long-term fiscal responsibility for taxpayers.
Model Inspired by National Bitcoin Advocacy Group
The bill mirrors a policy model promoted by Satoshi Action, a national nonprofit focused on Bitcoin policy. This group helped draft the legislative language and pushed for its adoption. Advocates of the bill see it as a blueprint for other states. The policy framework outlines a strategic approach to integrating digital assets into public finance.
Arizona passed a similar bill through its legislature, but Governor Katie Hobbs vetoed it on May 2. In Florida, lawmakers withdrew two proposed crypto reserve bills earlier this month.
These actions reflect growing but uneven state-level interest in digital asset policy. While New Hampshire moved forward, other states face resistance or political hesitation.
Federal Interest in Bitcoin Policy Also Rising
National interest in digital assets is also growing. Former President Donald Trump signed an executive order to create a federal “Digital Asset Stockpile.” That initiative includes a proposal for a Strategic Bitcoin Reserve.
Senator Cynthia Lummis introduced the BITCOIN Act to allow the federal government to expand its digital asset holdings. Her bill remains under review by the U.S. Senate Banking Committee.
Law to Take Effect in 60 Days
New Hampshire’s law will become active 60 days after signing. This timeline gives the treasury time to establish custodial systems and assess market options. The state aims to begin investments shortly after the law takes effect. Policymakers believe this move could influence national policy and encourage further adoption across state governments.
