New Hampshire became the first state this month to authorize a strategic Bitcoin reserve. As the lead sponsor of this groundbreaking legislation, I鈥檓 proud that our state continues its tradition of being 鈥渇irst in the nation鈥 鈥 not just in presidential primaries, but also in fiscal innovation.
Keith Ammon
The legislation allows the state treasurer to invest up to 5% of certain state-held funds in Bitcoin or precious metals, assets with a fixed supply that effectively hedges against inflation. This approach isn鈥檛 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鈥檚 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.
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Nearly 40% of all U.S. dollars have been issued since 2020. This figure reflects the growth of the nation's money supply during and since the COVID-19 pandemic. The consequences of this inflationary monetary policy are felt by every American at the grocery store, in housing costs and throughout our economy.
States should think twice before creating strategic crypto reserves, as New Hampshire has done. That state鈥檚 lawmakers have placed a dubious bet using public funds on a shady and risky product. If they lose, so will taxpayers and others.
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 鈥渄igital gold鈥 with additional benefits: It鈥檚 instantly verifiable, easily storable and transportable, 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 now 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.
Bitcoin and gold can reduce overall portfolio risk while improving long-term returns through diversification and regular rebalancing. Bitcoin experiences volatility. But it has averaged double-digit annual returns over the past decade. The 5% allocation maximum ensures limited exposure while providing meaningful inflation protection.
Since exempting virtual currency from money transmitter regulations in 2017, New Hampshire has created legal frameworks for and proposed specialized court dockets for this emerging sector.聽
The bipartisan support for the New Hampshire measure demonstrates this isn鈥檛 a partisan issue 鈥 it鈥檚 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 鈥 precisely the hedge needed in uncertain times.
As of March, 16 states had 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.聽
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. I invite my colleagues nationwide to join New Hampshire, not for headlines but to secure your state鈥檚 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?
