New Hampshire Becomes First State to Establish Cryptocurrency Reserve

New Hampshire becomes the first U.S. state to establish a cryptocurrency reserve, allowing state investments in digital assets like Bitcoin. The new legislation enables the state to invest up to 5% of its public funds in digital assets meeting a $500 billion market cap, with Bitcoin being the only asset currently qualified. This move positions New Hampshire as a front-runner in the digital asset space, despite pushback from other states and federal opposition.

New Hampshire has made headlines by becoming the first state in the U.S. to establish a cryptocurrency reserve. Governor Kelly Ayotte signed House Bill 302 on Tuesday, which authorizes the state treasurer to invest in various digital assets, notably Bitcoin. Under the new law, the state can allocate up to 5% of its public funds into any digital asset boasting a market cap of over $500 billion.

As it stands, Bitcoin is the sole digital asset that meets this requirement, with its market hovering just under $2 trillion. The next contender, Ethereum, is far behind at around $219 billion and only briefly surpassed the $500 billion mark in November 2021. Any digital assets bought by New Hampshire will either be kept in a secure custody solution or through exchange-traded products.

In a statement made on X, Gov Ayotte expressed her excitement, declaring, “New Hampshire is once again First in the Nation!” She celebrated the signing of the law, stating its potential to propel the state into the future of commerce through cryptocurrency and precious metals. Republican state Rep. Keith Ammon, who sponsored the bill, echoed this sentiment.

The New Hampshire House Republicans also touted the state’s pioneering move, posting on X that it lays the foundation for a strategic bitcoin reserve. They emphasised New Hampshire’s status as a leader in the digital asset space, referencing the state’s motto, “Live Free or Die.”

Meanwhile, Arizona had a crypto reserve bill that passed through state chambers, yet it was subjected to a veto from Gov. Katie Hobbs, citing concerns about retirement funds being directed into what she termed as untested investments. North Carolina and Texas, on the other hand, have made progress on similar bills, though they remain in legislative limbo awaiting final approval. Various other states, including Georgia and Illinois, are also considering their own crypto reserve legislation.

At the federal level, the government does not yet have a crypto reserve established, despite former President Donald Trump having signed an executive order earlier this year aimed at creating a “Strategic Bitcoin Reserve.” Trump reiterated this goal during a Bitcoin conference last July, emphasising a policy of retaining all Bitcoin acquired by the U.S. government in the event he returns to office.

However, Trump’s initiatives have not met with unanimous support. Congressional Democrats are countering by proposing legislation aimed at blocking politicians from engaging in cryptocurrencies. Senator Jeff Merkley (D-OR) has announced plans to introduce a bill that would prohibit lawmakers and their families from endorsing or sponsoring cryptocurrencies, claiming it’s necessary to avoid potential corruption derived from these financial practices.

In January, Trump entered the realm of meme coins by launching $TRUMP and $MELANIA, and he’s also working on creating his Bitcoin Exchange-Traded Fund (ETF).