New Hampshire, Florida Lead U.S. States in Bitcoin Treasury Integration Amid Federal Shift

Two U.S. states, New Hampshire and Florida, have recently taken significant steps to integrate Bitcoin into their state treasuries. New Hampshire's House of Representatives passed HB302, which allows the state treasurer to allocate up to 10% of public funds to eligible digital assets, stablecoins, and precious metals, provided they meet strict eligibility criteria, including a market cap exceeding $500 billion averaged over the prior year. The legislation also mandates that these assets must be either held directly by the treasurer, custodied by a regulated institution, or purchased through exchange-traded products.

Florida has also advanced its own digital reserves bill, which not only approves Bitcoin and other high-cap digital assets for treasury investment but also codifies Bitcoin custody and loaning directly into state statute. This move by Florida aligns with New Hampshire's actions, signaling a broader trend among U.S. states to assert digital asset autonomy while the federal government recalibrates its crypto enforcement priorities.

The U.S. Department of Justice (DOJ) has announced a shift in its approach to digital asset regulation. Deputy Attorney General Todd Blanche issued a memo confirming that the DOJ would disband its National Cryptocurrency Enforcement Team (NCET). The Department will no longer target exchanges, mixers, or wallets for unintentional regulatory violations. Instead, prosecutors are instructed to focus solely on cases where individuals use crypto for crimes such as terrorism, narcotics trade, or financial fraud. This shift follows President Trump’s Executive Order 14178, which explicitly rejects “regulation by prosecution” in the digital asset space.

The DOJ’s pullback from regulating digital assets has created an opportunity for states to take the lead in integrating cryptocurrencies into public finance. With enforcement bodies scaled back, states like Florida and New Hampshire are seizing the moment to formalize Bitcoin reserve frameworks for public funds and treasury reserves. This convergence of legislative actions with federal de-escalation marks a turning point in the relationship between crypto and statecraft, with states leading the charge in normalizing digital assets in government finance.

As Bitcoin becomes an investment option for state treasuries, the landscape for digital assets in U.S. governance is changing rapidly. This coordinated maneuver by states amidst a federal withdrawal indicates a strategic approach to integrate cryptocurrencies into public finance. Observers will need to keep a close eye on how these developments might influence the broader market dynamics and regulatory environment. The synchronization of these policies across state lines suggests a broader political trend, with U.S. states looking to assert digital asset autonomy while the federal government recalibrates its crypto enforcement priorities.