New Hampshire sets 5% crypto reserve cap with new law

New Hampshire has become the first US state to authorise its treasury to invest in cryptocurrencies, following the signing of House Bill 302 by Governor Kelly Ayotte on May 6, 2025.

The new law allows the state treasurer to allocate up to 5% of public funds into digital assets with a market capitalisation exceeding $500 billion, a threshold currently met only by Bitcoin (CRYPTO:BTC).

“New Hampshire is once again First in the Nation! Just signed a new law allowing our state to invest in cryptocurrency and precious metals,” Governor Ayotte announced, highlighting the state’s move to diversify its investment strategy.

The legislation also permits investments in precious metals such as gold, silver, and platinum, and mandates that digital assets be held through a qualified custodian or US-regulated exchange-traded product for security and transparency.

The law takes effect in 60 days and is seen as a more progressive step than similar efforts at the federal level, where a national reserve would only include already-held assets and not new acquisitions.

Other states, including Arizona and Florida, have considered similar bills, but New Hampshire is the first to enact such legislation after recent vetoes and withdrawals elsewhere.

The bill received bipartisan support and was amended during the legislative process to focus on high-capitalisation assets, excluding stablecoins and staking options.

Financial analysts are watching closely as New Hampshire’s move could influence other states and potentially guide future federal policy on cryptocurrency reserves.

The state’s digital assets will be managed securely by the treasury, either through a custody solution or exchange-traded products, ensuring fiscal responsibility and oversight.