New Hampshire became the first state this month to authorize a strategic Bitcoin reserve. As the lead sponsor of this groundbreaking legislation, I’m proud that our state continues its tradition of being “First in the Nation” — not just in presidential primaries but also in fiscal innovation.

The legislation allows the state treasurer to invest up to 5 percent of certain state-held funds in Bitcoin or precious metals, assets with a fixed supply that effectively hedges against inflation. This approach isn’t about speculation but prudent risk management in an era of unprecedented federal spending and monetary expansion.

Consider the stark reality: As of May, the national debt has surpassed $36.2 trillion, according to U.S. Treasury data. The Congressional Budget Office projects that interest payments will reach $952 billion in 2025, exceeding the government’s spending on Medicare and national defense, second only to Social Security. By 2026, interest costs will reach $1 trillion, or about 3.5% of gross domestic product, eclipsing the previous high set in 1991.

Nearly 40% of all U.S. dollars have been issued since 2020. This figure reflects the growth of the M2 money supply during and since the COVID-19 response. The consequences of this inflationary monetary policy are felt by every American at the grocery store, in housing costs, and throughout our economy.

States are inextricably tied to the dollar, yet public officials are responsible for protecting taxpayer funds from long-term devaluation caused by federal mismanagement. This is where Bitcoin and precious metals offer a potential solution.

Gold has a 5,000-year history as a superior store of value. With its algorithmically fixed supply of 21 million units, Bitcoin functions as “digital gold” with additional benefits: it’s instantly verifiable, easily storable and transportable, absolutely fixed in supply, and impossible to counterfeit. The two assets are complementary.

The New Hampshire legislation sets strict guardrails: digital assets must have a market capitalization of $500 billion (only Bitcoin currently qualifies) and be held in secure, U.S.-regulated custody. The state treasurer retains discretion, but the law provides the authority and framework to act responsibly.

Modern portfolio theory demonstrates how non-correlated assets like Bitcoin and gold can reduce overall portfolio risk while improving long-term returns through diversification and regular rebalancing. Yes, Bitcoin experiences volatility, but it has averaged double-digit annual returns over the past decade. The 5 percent allocation maximum ensures limited exposure while providing meaningful inflation protection.

New Hampshire’s blockchain leadership didn’t happen overnight. Since exempting virtual currency from money transmitter regulations in 2017, the state has created legal frameworks for blockchain-governed corporations and proposed specialized court dockets for this emerging sector. Through the all-volunteer, nonprofit New Hampshire Blockchain Council, which I chair, we’re working to establish our state as a haven for blockchain innovators seeking regulatory clarity.

The bipartisan support for the New Hampshire measure demonstrates this isn’t a partisan issue — it’s about sound money and fiscal responsibility. Citizens across the political spectrum are concerned about inflation and a lack of fiscal restraint in Washington. Precious metals and Bitcoin offer a decentralized, secure, non-political monetary system — precisely the hedge needed in uncertain times.

As of March, 16 states had already introduced similar legislation. Texas and Florida are moving quickly, Arizona has created a limited reserve for unclaimed crypto assets, and Oklahoma has nearly passed its version. The momentum is building, thanks to advocacy groups like the Satoshi Action Fund, which has been instrumental in developing model legislation and educating lawmakers nationwide about the benefits of state Bitcoin reserves. This movement is gaining momentum because state legislators recognize their duty to protect public funds from the consequences of federal fiscal mismanagement.

Other states need not reinvent the wheel. The New Hampshire legislation provides a tested model, and organizations like the Satoshi Action Fund offer resources and model legislation for state officials interested in similar initiatives. I invite my colleagues nationwide to join New Hampshire, not for headlines but to secure your state’s financial future.

History shows that governments drowning in debt invariably resort to printing more money and devaluing their currency through monetary debasement. This allows them to lessen the total value owed at the expense of citizens. No state can stop this train until it eventually runs out of track, but we can prepare by diversifying our reserves with assets designed to preserve value.

New Hampshire has taken the first step. Will your state be next?

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ABOUT THE WRITER

Keith Ammon is a New Hampshire state legislator and lead sponsor of House Bill 302, the nation’s first strategic Bitcoin reserve law. He wrote this for InsideSources.com.

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