New Hampshire has become the first U.S. state to legalize the use of state funds for investments in cryptocurrency by signing a bill on May 6, 2025.
Significance of the New Law
The law signed by New Hampshire Governor Kelly Ayotte positions the state at the forefront of public investments in digital assets, opening a new era for financing.
Conditions for Cryptocurrency Investment
The law allows up to 5% of public funds to be allocated to investments in Bitcoin and other cryptocurrencies. Only digital currencies with a market capitalization exceeding $500 billion, such as Bitcoin and Ethereum, qualify for investment. Investments will be managed through 'qualified custodians' to ensure secure management of assets.
Potential Implications for Other States
This legislative initiative may prompt other states to reconsider their views on digital currency investments. There is expected to be increased interest in investing in Bitcoin and Ethereum from state funds, potentially leading to a broader integration of digital assets into public finance. Historically, such moves elevate public discussions about the necessity for new regulatory frameworks.
The law signed in New Hampshire opens up new opportunities for state investments in cryptocurrencies and may significantly influence the financial policies of other states.
