Investors may be running out of time to pre-empt widespread nation-state adoption of digital assets
In a landmark move for state-level cryptocurrency adoption, New Hampshire has become the first U.S. state to authorise the investment of public funds into digital assets. On May 6, 2025, Governor Kelly Ayotte signed House Bill 302 into law, permitting the state treasurer to allocate up to 5% of New Hampshire’s reserves into cryptocurrencies with a market capitalisation exceeding $500 billion—currently, only Bitcoin qualifies. The law also allows investments in precious metals, aiming to diversify the state's holdings and hedge against inflation.
This move positions New Hampshire at the forefront of integrating digital assets into public finance and builds upon a growing national trend.
Notably, the U.S. federal government laid the groundwork for this shift in early 2025 by announcing the creation of a Strategic Cryptocurrency Reserve as part of a broader digital asset framework – initially to be capitalised by Bitcoin seized from criminals, of which the US government holds roughly 200,000 BTC (roughly R364 billion). The move sparked widespread debate but ultimately signalled Washington’s recognition of crypto’s growing role in the global financial ecosystem and the role it can play in guarding against inflation and long-term debasement of fiat currencies.
Meanwhile, Arizona has taken a more cautious approach. Governor Katie Hobbs recently vetoed Senate Bill 1025, which proposed investing up to 10% of the state's treasury and pension funds into cryptocurrencies. Hobbs cited concerns over the volatility and untested nature of digital assets for public fund investments.
However, subsequently on May 7, she signed House Bill 2749 into law. This legislation allows Arizona to establish a Bitcoin and Digital Asset Reserve Fund, composed of unclaimed digital assets, staking rewards, and airdrops. Unlike Senate Bill 1025, this fund does not utilise taxpayer money but enables the state to manage and potentially benefit from crypto-related value accrual. A decision on Senate Bill 1373—which would authorise the state treasurer to invest up to 10% of Arizona’s Budget Stabilisation Fund into Bitcoin—is still pending.
Outside of these states, North Carolina and Texas are also relatively advanced in efforts to adopt similar legislation, according to data from Bitcoin Laws.
These initiatives underscore a broader shift toward institutional acceptance of digital assets. As jurisdictions test varying approaches, the groundwork is being laid for more coordinated, strategic use of cryptocurrencies by governments around the world. With regulatory frameworks maturing and market infrastructure strengthening, public sector involvement may become a catalyst for mainstream adoption on a global scale.
Jason Welz – Jaltech Fund Manager
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