Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
New Hampshire First U.S. State to Legalize Bitcoin Reserve
Crypto Law | May 7, 2025
Image: Freepik
New Hampshire Sets Precedent with Bitcoin Reserve Legislation
On May 6, 2025, Governor Kelly Ayotte signed New Hampshire House Bill 302 into law, allowing the state treasury to invest up to 5% of surplus public funds in digital assets with a market cap over $500 billion, currently only Bitcoin qualifies.
Kelly Ayotte, Governor of New Hampshire posted on X:
"New Hampshire is once again First in the Nation! Just signed a new law allowing our state to invest in cryptocurrency and precious metals."
The new law catapults New Hampshire to the forefront of state-level crypto adoption in North America, and is a breakthrough in what was becoming a stalling legislative trend. For example, States like Arizona and Florida faced political pushback or abandoned similar efforts.
Highlights of HB 302
1. Only Bitcoin Qualifies Currently
“...any digital assets with a market capitalization of over $500 billion averaged over the previous calendar year…”
See: National Bank Doubling Down on MicroStrategy’s Bitcoin Boom
This effectively excludes all altcoins including Ethereum unless they exceed the $500B threshold over a full year period. It's a narrow scope but deliberate to reduce risk and focus on perceived stability.
2. Strict Custody Requirements
“Secure custody solution" must include:
- End-to-end encryption
- Keys cannot be stored or accessed by smartphones
- Redundant secure data centers
- Multi-party governance structure
- Regular code audits and penetration testing
These detailed requirements reflect institutional-grade best practices (likely excluding retail options), and may raise the bar for custody providers targeting public entities.
3. Multi-Channel Investment Options
The state may invest in qualifying digital assets by direct holdings or qualified custodians or an exchange-traded product (ETP) registered by the U.S. Securities and Exchange Commission.
See: GameStop Joins Growing List of Bitcoin Treasury Holders
This opens the door for investing in ETF style exposure to bitcoin which reduces the complexities of ownership, custody, and compliance.
4. Gold, Silver, and Platinum Also Included
“Precious metals” means silver, gold, or platinum coins, bullion, or other forms. So, this isn't just a crypto reserve bill but also a hedge against fiat currency risk, and part of New Hampshire’s broader fiscal policy strategy.
5. Invest in Various Types of Funds
This means that will legislative approval, the state could invest in various types of qualifying funds. It could be a General Fund, Revenue Stabilization Fund, or any other fund approved by the legislature, allowing for flexible portfolio construction over time.
Federal Government's Strategic Bitcoin Reserve
At the federal level, President Donald Trump signed an executive order on March 6, 2025, establishing a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile, which would be funded largely by seized Bitcoin in criminal and civil cases and to avoid and prevent taxpayer burden. The order also mandated a full audit of government-held digital assets and restricted any Bitcoin sales from the reserve.
Ethical Concerns Over Trump's Personal Crypto Ventures
President Trump's involvement in personal cryptocurrency ventures has raised ethical questions of mixing political influence with personal financial gain. In January 2025, Trump launched a memecoin $TRUMP and recently announced a 'pay to play' exclusive dinner for the top 220 holders of his memecoin, which has generated the owner of the memecoin (reportedly a large portion is owned by the Trumps) $320 million in fees, according to the Globe and Mail.
Read: Will crypto lobbying tokens change political fundraising?
In response to the latest developments, Democrats Senators, Jeff Merkley and Chuck Schumer, introduced the End Crypto Corruption Act on May 6, 2025 by way of a press release, which aims to prevent U.S. federal officials and their immediate families from investing in, endorsing or financially benefiting from cryptocurrencies like memecoins.
Why It Matters
The varying approaches to crypto policy across different levels of U.S. government highlight the complexities and fast pace of change being considered, ever since Trump signed the digital assets and bitcoin reserve executive order. For global policymakers including Canada, New Hampshire's model could set a precedent for integrating digital assets into public fund portfolios. Surely, Vancouver's Mayor Ken Sim who has been a major advocate of a potential bitcoin reserve in Canada is following the impacts of this story closely.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
|---|---|---|
 |  |  |
Leave a Reply