New Hampshire became the first US state to sign a Bitcoin reserve law on May 6, 2025. This post covers what HB 302 actually says, the 5% cap and $500B market cap threshold, why NH succeeded where Arizona failed, and what comes next for state Bitcoin reserves.
On May 6, 2025, New Hampshire Governor Kelly Ayotte signed HB 302 into law, making New Hampshire the first US state to authorize its treasury to invest in Bitcoin. The law allows the state treasurer to allocate up to 5% of certain public funds into Bitcoin or other digital assets with a market cap exceeding $500 billion — a threshold that currently only Bitcoin meets.
This is a landmark moment for Bitcoin in the United States. While other states debated and many passed reserve bills through their legislatures, New Hampshire was the first to get a governor's signature.
The law authorizes — but does not require — the New Hampshire treasurer to invest state funds in qualifying digital assets. Key provisions:
Investment cap: Up to 5% of the funds covered by the bill can be allocated to qualifying assets.
Market cap threshold: Assets must have a market capitalization of at least $500 billion over the preceding 12 months. At Bitcoin's current market cap of $1.7 trillion, it's the only asset that qualifies. Ethereum's market cap ($250 billion) falls below the threshold.
Custody requirements: Assets must be held in custody that meets the state's security standards — likely qualified custodians meeting federal standards.
Staking restriction: The law prohibits staking of state-held digital assets, keeping the investment in a conservative hold-only strategy.
Legislative oversight: The investment program requires annual reporting to the legislature.
New Hampshire's success reflects a combination of political culture and legislative timing. The state's libertarian streak — it's home to the Free State Project, which has attracted hundreds of libertarian-leaning activists as permanent residents — created a receptive political environment.
The bill was sponsored by Representative Keith Ammon, who has been one of the most active Bitcoin legislators in any US state assembly. Ammon worked on earlier versions of the bill over multiple legislative sessions before the current version succeeded.
New Hampshire's success came against a backdrop of defeats in larger states:
Arizona (SB 1025): Passed both chambers with bipartisan support. Governor Katie Hobbs vetoed it in May 2025, citing concerns about putting retirement funds in "unproven" assets. As of early 2026, a revised version is working through the legislature.
Texas (SB 21): The Texas Strategic Bitcoin Reserve Bill passed the Texas Senate and cleared committee in the House. It awaits full House vote and Governor Abbott's signature as of 2026. Texas would be the largest state economy to adopt a Bitcoin reserve.
Oklahoma, Missouri, Montana, Maryland, Kansas: All passed or advanced Bitcoin reserve legislation in some form in 2025-2026. Results have varied by state.
North Carolina (HB 92): The Digital Assets Investment Act passed the House and would allow up to 10% of certain state investment funds in digital assets. Senate consideration ongoing.
Wyoming: Already among the most Bitcoin-friendly states legally, Wyoming is considering a state Bitcoin reserve separate from its existing crypto-positive regulatory framework.
New Hampshire's state-level action came after President Trump signed an executive order in March 2025 establishing a Strategic Bitcoin Reserve for the federal government — directing the Treasury to hold Bitcoin seized in criminal cases and potentially acquire more over time.
The federal reserve created political momentum and legitimacy for state-level reserve bills. After the federal government officially recognized Bitcoin as a strategic reserve asset, it became easier for state legislators to argue the same for their states.
New Hampshire's 5% cap applied to eligible state funds represents a relatively modest allocation — potentially tens of millions of dollars depending on which funds qualify. The political significance outweighs the immediate financial impact:
HB 302 builds on an already Bitcoin-positive regulatory environment in New Hampshire:
For Bitcoiners considering state residency, New Hampshire's combination of no income tax, no capital gains tax, and now a state Bitcoin reserve makes it one of the strongest jurisdictions in the US.
New Hampshire's implementation will be watched closely:
Texas, if it signs SB 21, would dwarf New Hampshire in economic significance. But New Hampshire will always hold the distinction of being first.
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Over 20 US states have introduced Bitcoin reserve bills in 2026. New Hampshire has passed one. Arizona cleared its legislature. Texas, Florida, Oklahoma, North Carolina, and others have active bills. Here's the current status of every major state Bitcoin reserve effort.