New Hampshire has made history by becoming the first state in the U.S. to approve a law allowing the investment of public funds in cryptocurrency. Governor Kelly Ayotte signed the bill on May 6, 2025, marking a significant step towards embracing digital assets in state finance.
Key Takeaways
- New Hampshire is the first state to authorize public fund investments in crypto assets.
- The law permits up to 5% of public funds to be invested in digital assets with a market cap of at least $500 billion.
- Currently, Bitcoin is the only cryptocurrency that meets this criterion.
- The legislation aims to diversify state investments and combat inflation.
- Other states are watching closely, with some already attempting similar measures.
The New Law’s Provisions
The newly enacted law allows New Hampshire’s state treasurer to allocate a portion of public funds—up to 5%—into digital assets. This innovative approach is designed to enhance the state’s investment portfolio and provide a hedge against inflation driven by federal monetary policies.
- Eligible Assets: The law specifies that only digital assets with a market capitalization of at least $500 billion can be considered for investment. Currently, this only includes Bitcoin (BTC).
- Investment Strategy: The law aims to diversify the state’s financial resources, potentially increasing returns and reducing risks associated with traditional investments.
Support and Opposition
The bill was championed by State Representative Keith Ammon, who emphasized the importance of financial innovation in state governance. He stated that the law would help mitigate inflation caused by excessive money printing by the federal government.
Dennis Porter, founder of the Satoshi Action Fund, expressed excitement over New Hampshire’s pioneering move, stating, "The first one’s the hardest, by far. Having a state that’s already gotten it done will really increase the political momentum."
Despite the enthusiasm, the law has faced scrutiny. Critics argue that investing public funds in volatile assets like cryptocurrencies could pose significant risks. However, supporters believe that the potential benefits outweigh the risks, especially in a rapidly evolving financial landscape.
The National Landscape
New Hampshire’s decision comes amid a broader national conversation about cryptocurrency regulation and investment. Other states, such as Arizona and Florida, have attempted to introduce similar legislation but have faced challenges, including vetoes and withdrawals.
- Arizona: Initially led the charge but saw its legislation vetoed.
- Florida: Recently withdrew its efforts to establish a crypto reserve.
- North Carolina: Remains a strong contender with ongoing legislative efforts.
Former President Donald Trump had previously called for the establishment of a federal cryptocurrency reserve, indicating a growing interest at the national level. However, the Treasury Department is still evaluating the feasibility of such a move.
Conclusion
New Hampshire’s groundbreaking law sets a precedent for other states considering similar measures. As the first state to embrace cryptocurrency in public finance, New Hampshire may pave the way for a new era of digital asset investment in government portfolios. The success of this initiative could inspire other states to follow suit, potentially reshaping the landscape of public finance in the United States.
