New Hampshire First US State to Invest 5% of Reserves in Bitcoin

Generated by AI AgentCoin World
Wednesday, May 7, 2025 11:16 am ET1min read
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New Hampshire has made a significant move in the realm of digital assets by passing a law that allows the state to diversify 5% of its reserve into Bitcoin (BTC) and other digital assets with a market cap above $500 billion. This groundbreaking legislation, signed into law on May 6, positions New Hampshire as the first U.S. state to formally advance such a bill. Governor Kelly Ayotte celebrated the achievement, stating, “New Hampshire is once again first in the Nation! Just signed a new law allowing our state to invest in cryptocurrency and precious metals.”

The bill, which was drafted with the assistance of the Satoshi Action Fund, a Bitcoin advocacy group, establishes a Bitcoin and Digital Asset Reserve Fund. This fund will enable the state to purchase BTC or other qualifying digital assets and hold them through custodians or an exchange-traded fund (ETF). The total investment in these assets will be capped at 5% of the state's total funds.

Nate Geraci of ETF Store commended the move, noting that it serves as a warning to those who still view cryptocurrency as a scam. He stated, “And you still think crypto is a scam. Time to pay attention.”

New Hampshire's initiative comes amidst a competitive landscape where other states, such as Arizona, have also explored similar legislation. However, Arizona's bill was vetoed by the governor due to concerns over potential risks to retirement funds. This development highlights the varying stances and regulatory approaches different states are taking towards digital assets.

The new law in New Hampshire will come into effect after sixty days, meaning the market will be closely watching to see how much the state allocates for its first BTC purchase by July 2025. The success of this initiative could influence other states, such as North Carolina and Texas, to consider similar measures. The passage of this law not only marks a significant step for New Hampshire but also sets a precedent for how other states might approach the integration of digital assets into their financial strategies.