- New Hampshire and Florida have introduced bills allowing state treasuries to invest in Bitcoin and other high-market-cap digital assets.
- New Hampshire’s bill permits up to 10% of public funds to be allocated to eligible digital assets, stablecoins, and precious metals.
- Florida’s legislation goes further, codifying Bitcoin custody and loaning directly into state law.
- The U.S. Department of Justice (DOJ) has shifted its stance, halting prosecutions for unintentional regulatory breaches in the crypto space.
- These developments reflect a broader trend of states asserting digital asset autonomy as federal enforcement softens.
States Embrace Bitcoin for Public Funds
In a bold move signaling the growing acceptance of digital assets, New Hampshire and Florida have advanced legislation to integrate Bitcoin and other cryptocurrencies into their state treasuries. New Hampshire’s House of Representatives narrowly passed HB302, a bill that allows the state treasurer to allocate up to 10% of public funds to digital assets, stablecoins, and even precious metals. However, this investment comes with strict conditions: eligible assets must have a market capitalization exceeding $500 billion, averaged over the prior year. This ensures that only the most stable and widely adopted assets are considered.
The bill also outlines specific custody requirements. Assets must either be held directly by the state treasurer, stored with a regulated institution, or acquired through exchange-traded products. These measures aim to mitigate risks while enabling the state to explore the financial potential of digital assets. New Hampshire’s cautious yet forward-thinking approach reflects a growing recognition of cryptocurrencies as viable tools for public finance.
Florida’s Bold Crypto Strategy
Florida, on the other hand, has taken an even more assertive stance. The state’s House Insurance and Banking Committee unanimously advanced a bill that not only permits treasury investments in Bitcoin and other high-market-cap digital assets but also codifies Bitcoin custody and loaning into state law. This operational twist sets Florida apart, as it moves beyond mere investment to actively integrating Bitcoin into its financial infrastructure.
By embedding Bitcoin custody and lending into its statutes, Florida is positioning itself as a leader in the adoption of digital assets for state-level financial operations. This move could pave the way for other states to follow suit, especially as the federal government takes a step back from aggressive crypto enforcement. Florida’s proactive approach underscores its ambition to leverage the benefits of blockchain technology while setting a precedent for other states to explore similar strategies.
Federal De-escalation and State Autonomy
The timing of these state-level initiatives is no coincidence. Earlier this week, the U.S. Department of Justice announced a significant shift in its approach to cryptocurrency regulation. Deputy Attorney General Todd Blanche issued a memo confirming the disbanding of the National Cryptocurrency Enforcement Team (NCET). The DOJ will no longer target exchanges, mixers, or wallets for unintentional regulatory violations, marking a departure from its previous stance.
This policy shift aligns with President Trump’s Executive Order 14178, which explicitly rejects “regulation by prosecution” in the digital asset space. Prosecutors are now instructed to focus on cases involving clear criminal intent, such as terrorism financing, narcotics trade, or financial fraud. By scaling back enforcement, the federal government is effectively transferring the responsibility of crypto regulation to individual states, creating an environment where states like Florida and New Hampshire can take the lead.
A Turning Point for Crypto and Statecraft
The convergence of state-level legislative action and federal de-escalation marks a pivotal moment in the relationship between cryptocurrency and government finance. With the DOJ stepping back, states are seizing the opportunity to assert their autonomy in the digital asset space. This shift is not just about financial innovation; it’s about redefining the role of states in shaping the future of money.
Florida and New Hampshire’s actions highlight a broader trend: the line between crypto and statecraft is rapidly disappearing. By integrating Bitcoin into their treasuries, these states are not only embracing the financial potential of digital assets but also challenging traditional notions of public finance. As more states follow their lead, the role of cryptocurrency in government operations is likely to expand, signaling a new era of decentralized financial governance.
Conclusion
The legislative moves by New Hampshire and Florida, combined with the DOJ’s softened stance, represent a significant shift in the U.S. approach to cryptocurrency. These developments reflect a growing recognition of digital assets as legitimate tools for public finance and a broader trend of state-level innovation in the face of federal de-escalation. As the line between crypto and statecraft continues to blur, the actions of these pioneering states could set the stage for a new era of financial governance, where digital assets play a central role in shaping the future of public finance.