In a groundbreaking move, New Hampshire has become the first U.S. state to formally allow a portion of its state reserves to be invested in bitcoin. Governor Kelly Ayotte signed into law a bill that authorizes the state treasury to allocate up to 5% of its funds into digital assets and precious metals.
These digital assets should have a market capitalization exceeding $500 billion. At present, only bitcoin qualifies under that threshold.
A Milestone for Institutional Bitcoin Adoption
The bill’s passage marks a major milestone for institutional bitcoin adoption in the United States, as it sets a legal framework for public investment in digital assets at the state level. According to Representative Keith Ammon, one of the bill’s key architects, the move is aimed at safeguarding New Hampshire’s reserves against inflation and monetary debasement.
“The federal government continues to print trillions of dollars, eroding the value of the currency,” Ammon said. “This law allows our state to diversify into sounder forms of money.”
The approval of this law cements bitcoin’s role as a strategic reserve asset, not just for corporations and sovereign wealth funds, but now also for U.S. state governments. Unlike federal initiatives that rely heavily on executive orders, such as President Trump’s efforts to build a national strategic bitcoin reserve, New Hampshire’s law provides long-term legal certainty. This sets a precedent for other states considering similar legislative routes.
Arizona’s Contrasting Approach: Soft Bitcoin Exposure
Interestingly, while New Hampshire moves boldly ahead, other states are adopting more cautious strategies. In Arizona, a similar bill was recently vetoed by Democratic Governor Katie Hobbs, who expressed concerns over the volatility of crypto assets. However, Hobbs did sign a different bill allowing the state to take custody of cryptocurrencies from dormant accounts.
This law allows the Arizona Department of Revenue to claim unresponsive crypto accounts after three years of inactivity, mirroring how traditional banks handle abandoned assets. Rather than liquidating the tokens into U.S. dollars, the state can now hold them in a Bitcoin and Digital Assets Reserve Fund. Arizona may also stake eligible assets or accept airdrops from new blockchain protocols.
A Race Among States — And a Growing Divide
The broader trend of state-level interest in bitcoin is visible across the U.S., though not all states are moving in the same direction. According to BitcoinLaws.io, legislative progress has stalled or been halted in several states including Florida, Oklahoma, South Dakota, Montana, North Dakota, Pennsylvania, New Mexico, and Wyoming.
Still, momentum appears to be building. With New Hampshire setting a legislative precedent and Arizona enabling indirect crypto exposure, it’s possible this could spark a domino effect among other states. North Carolina and Texas are also exploring similar proposals.
Why This Matters for Bitcoin’s Legitimacy
While corporations like Strategy have made headlines for converting billions of dollars into bitcoin, state-level adoption offers a new layer of legitimacy and stability. Public sector involvement in bitcoin not only helps diversify state assets but also signals increasing institutional trust in the asset’s long-term value proposition.
Moreover, such legislative actions may accelerate mainstream adoption, encourage clearer federal regulation, and reduce the political stigma that often surrounds cryptocurrency—particularly in the wake of partisan debates linked to Trump’s personal involvement with crypto.
Conclusion
New Hampshire’s decision to legally invest state funds in bitcoin is more than just a symbolic victory for digital assets, it’s a strategic shift in how governments view money, inflation, and financial resilience. As inflation remains a global concern and fiat currencies face ongoing debasement, expect more states to explore bitcoin as a modern hedge and reserve asset.
The era of bitcoin as a state-backed financial tool may have just begun.
