New Hampshire passed legislation establishing the country’s first crypto reserve.
The new law allows the state treasurer to purchase digital assets with a market cap of over $500 billion.
Trump’s executive order on a national crypto reserve didn’t authorize new purchases of digital assets.
Legislators in New Hampshire voted to pass a bill that establishes the first state crypto reserve.
“New Hampshire is once again First in the Nation!” state governor Kelly Ayotte wrote on X. “Just signed a new law allowing our state to invest in cryptocurrency and precious metals.”
The tweet is in reference to HB 302, a bill that allows the state treasure to invest as much as 5% of New Hampshire’s public funds into precious metal and digital assets with a market cap of over $500 billion. Among crypto tokens, that would include only bitcoin.
Digital assets will be held by the state treasurer using a secure custody solution or through an exchange-traded product. Now that it’s been passed, the bill will become law in 60 days.
The passage of the crypto reserve bill not only makes New Hampshire the first state to establish a reserve, but the state has also gone a step further than the federal government.
A national bitcoin reserve was a key priority for crypto bulls who cheered Donald Trump’s presidential win, but his policy has so far fallen short. The Trump administration issued an order to create a US reserve, but it would be stocked only with bitcoin already owned by the government, with no promise to buy more.
Bitcoin enthusiasts have argued that federal and state governments should stockpile the token as a hedge against inflation and instability in the traditional financial system, and legislation has been introduced in states across the country.
Some of these efforts have lost steam, however. By March, bills had failed to advance in Montana, Wyoming, North Dakota, and Pennsylvania. Last week, Florida became the latest state to withdraw reserve bills.
Advocates for a US reserve have argued that its creation could accelerate similar stockpiles across jurisdictions and even the world, pushing the price of bitcoin higher. The top token was about flat on Tuesday afternoon, trading at $94,800.
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