On May 7, 2025, New Hampshire became the first state in the U.S. to legally authorize Bitcoin investments for its state treasury.
New Hampshire's Bitcoin Reserve Legislation
Governor Chris Sununu of New Hampshire officially signed House Bill 302 into law on May 6, 2025. This law allows the state treasury to invest in Bitcoin and other digital assets. The legislation, effective in 60 days, sets a 5% limit on reserve holdings, emphasizing a multi-signature mechanism for security. New Hampshire is now enabled to engage in Bitcoin investments, providing a template for other U.S. states.
Bitcoin Market and Legislative Impact
Currently, Bitcoin's circulating supply is approaching its capped limit of 21 million coins, making it a deflationary asset. Bitcoin's market valuation stands at over $1.93 trillion, with a trading price of $97,018.64 as of May 7, 2025, according to CoinMarketCap. Regulation of cryptocurrency reserves could enhance state portfolios, albeit with inherent risks.
Future of Cryptocurrency Investments at the State Level
The passage of House Bill 302 reflects a commitment to exploring modern financial avenues for state investments. Implementing this bill could pave the way for integrating cryptocurrencies into public finance strategies, inspiring similar actions in other regions.
New Hampshire's approval of Bitcoin and digital asset investments marks a significant step for cryptocurrency discussions and acceptance at the state level in the U.S.
