Bill Background and Core Content
On March 5, 2025, the New Hampshire House Business and Consumer Affairs Committee passed the Bitcoin Reserve Bill HB302 by an overwhelming vote of 16–1. The proposal would allow the state treasury to invest up to 5% of government funds in Bitcoin. Led by Republican Representative Keith Ammon, the bill aims to enhance the state’s fiscal inflation resistance by allocating Bitcoin and to position New Hampshire as a pioneer in crypto-friendly state policies. The revised bill clearly stipulates that the eligible asset must be “a digital asset with an average market cap of over USD 500 billion over the past year” – with Bitcoin being the only asset meeting this requirement. If the bill is ultimately passed, the state government would purchase and hold Bitcoin via a compliant custodial institution.
Legislative Progress and Bipartisan Support
HB302 marks a significant shift in state-level government attitudes towards crypto assets in the U.S. Although led by Republicans, the bill has also garnered support from two Democratic legislators, reflecting Bitcoin’s growing bipartisan appeal as a tool for fiscal innovation. Under the revised provisions, the state treasury must choose a custody provider that has passed a security audit and periodically disclose its holdings and returns to the legislature. The state treasury has indicated that, if enacted, a Bitcoin investment pilot could be launched with an initial scale of up to USD 150 million (5% of the state’s general fund).
This development echoes a national trend—at least five states, including Utah and Arizona, are advancing similar legislation to incorporate Bitcoin into their strategic reserves. New Hampshire’s success could trigger a “legislative domino effect,” encouraging more states to allocate crypto assets. According to JuCoin data, Bitcoin’s price briefly increased by 2.3% after the announcement, indicating a positive market response to the policy.
The Two-Way Game of Potential Impact and Risks
If HB302 is ultimately enacted, its effects could be felt on multiple levels. The inclusion of Bitcoin might boost the inflation resistance of the state fund. With Bitcoin’s historical annualized return at approximately 150%, a USD 150 million investment could yield significant returns, though it would also face short-term volatility risks (as seen when Bitcoin dropped 77% in 2021). New Hampshire’s pilot may also inspire other states to follow suit; VanEck predicts that state-level reserves nationwide could contribute an incremental USD 20 billion+ to Bitcoin, further solidifying its status as “digital gold.” Moreover, the requirement to collaborate with a compliant custodial institution could accelerate traditional financial institutions in developing crypto custody and asset management products, promoting greater integration between the two markets.
However, HB302’s implementation still faces several obstacles:
- Legislative Hurdles: The bill must pass a full House vote (requiring a simple majority out of 201 votes) and then be reviewed by the Senate. Similar proposals in other states (e.g., Ohio, Montana) have been rejected due to concerns over volatility.
- Federal Policy Conflicts: Should the federal government enact restrictive regulations (such as banning state-level crypto reserves), legal disputes could arise.
- Technical Execution: The practical costs of cold storage solutions and liquidity management issues remain unresolved, potentially affecting investment efficiency. For instance, if the state treasury needs to make an emergency withdrawal during a market crash, it might be forced to sell at a loss.
Future Outlook: A National Experiment in Crypto Policy
New Hampshire’s legislative attempt is not just a local policy breakthrough—it is a “litmus test” for the U.S. crypto asset strategy. If successful, it could prompt other states to accelerate similar measures. Utah’s Bitcoin reserve proposal is already in the Senate vote stage and might become the first state to pass such legislation. State-level practice may eventually compel the federal government to clarify Bitcoin’s regulatory framework and even spur a national reserve plan. Furthermore, institutions such as the Abu Dhabi sovereign wealth fund have begun allocating Bitcoin, and state-level legislation could further attract sovereign capital.
Investors should closely monitor the full House vote in mid-March 2025 and the legislative progress in states like Utah. If state-level crypto asset allocation becomes a trend, it could reshape Bitcoin’s liquidity structure and market valuation logic, creating new opportunity windows for long-term holders.
Neason Oliver
