A bitcoin monument at Plaza Bitcoin in El Salvador's capital
Two more states have introduced bills that could direct state treasurers to invest part of the states' funds into digital assets. AFP

KEY POINTS

  • New Hampshire's proposed bill recommends investing in any digital asset with an average market cap of $500B in the past calendar year
  • North Dakota's proposed resolution did not specify which specific digital asset it recommends the state treasurer to allocate funds
  • Pennsylvania and Texas lawmakers previously introduced strategic Bitcoin reserve bills, with the Texas bill having a mandatory 5-year HODL provision

Two more states are considering the feasibility of investing some state funds into digital assets, marking a significant milestone in the Bitcoin community's push for the United States to adopt a strategic BTC reserve.

If the proposed bills to establish digital asset reserves in the states pass, they will be among the first in the country.

The new administration under Donald Trump is also expected to establish a national strategic Bitcoin reserve.

New Hampshire Representative Unveils Digital Assets Reserve Act

Republican New Hampshire Rep. Keith Ammon has introduced a bill that proposes giving authority to the state treasury "to invest in precious metals and digital assets," as per a copy of the bill posted on X by Dennis Porter, CEO of Satoshi Action Fund, a nonprofit that has been encouraging governments to adopt a Bitcoin reserve strategy.

The bill would allow the state treasurer to allocate some public funds to "any digital asset with a market capitalization of over $500 billion averaged over the previous calendar year."

Bitcoin is the only digital asset that has passed this requirement. Other major altcoins such as Ethereum (ETH) and XRP have not hit the market cap threshold.

"The ethos in New Hampshire is 'Live Free or Die' – leave me alone, and don't burden me with too many regulations," Ammon told Decrypt.

"We're tied to the U.S. dollar, whether we like it or not, but this would allow us to have the state invest a small portion into this uncorrelated, new asset class," he added.

North Dakota Introduces Resolution for Digital Asset Reserve

A resolution in North Dakota's state legislature seeks to encourage the state treasurer and State Investment Board "to invest selected state funds in digital assets and precious metals."

If approved, lawmakers would encourage the two authorities to invest part of the "state general fund, budget stabilization fund, and legacy fund" in digital assets and precious metals."

The proposal didn't specify which digital assets the Assembly would recommend.

States Take Steps Toward $BTC Reserve Amid Wait for Trump 2.0

Since Trump won the 2024 presidential race, there have been talks about a national strategic Bitcoin reserve. However, some analysts have pointed out that it will take time for such a proposal to come together.

Some states have already made the move toward establishing their own BTC reserves.

Pennsylvania leads the pack after GOP Pennsylvania Rep. Mike Cabell introduced a bill in November, making Pennsylvania the first U.S. state to consider investing in Bitcoin for reserve purposes.

Texas followed suit about a month later, as GOP Texas Rep. Giovanni Capriglione proposed legislation requiring Texas to "HODL" its Bitcoin purchases for a mandatory period of five years.

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