Are U.S. states creating crypto reserves?

Cryptocurrency laws in the U.S. are still taking shape at the federal level, but some states are taking the lead on crafting their own crypto policies. A handful of states, including New Hampshire, have begun to explore or even establish crypto reserves. These policies allow governments to hold Bitcoin and other cryptocurrencies as part of their financial strategy.

What are crypto reserves?

A crypto reserve is when a government holds cryptocurrency—usually Bitcoin—in its investment portfolio, much like gold or cash reserves. Supporters say crypto reserves could help diversify state assets and potentially generate long-term gains. Critics warn about the risk of volatility and the challenge of securing digital assets.

What states allow Bitcoin reserves?

In 2025, New Hampshire passed HB 302, a first-in-the-nation law allowing the state treasurer to invest up to 5% of its public funds in alternative assets, including Bitcoin. To qualify, the digital asset must have a market capitalization over $500 billion, which currently limits eligibility to Bitcoin alone. The law also includes guardrails around custody and oversight.

Texas followed suit with a similar law, creating a Strategic Bitcoin Reserve. Arizona passed a more limited measure allowing the state to hold seized crypto assets.

What does federal law say about crypto?

At the national level, cryptocurrency is regulated by several agencies. The Internal Revenue Service (IRS) treats digital assets as property, meaning crypto transactions are subject to capital gains taxes. The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) define whether particular cryptocurrencies are securities or commodities and regulate trading accordingly.

In 2025, the U.S. adopted its first major crypto legislation—the GENIUS Act— creating a regulatory framework for stablecoins. Earlier in 2025, President Trump signed an executive order directing the U.S. Treasury to inventory federal crypto holdings and create a Strategic Bitcoin Reserve using forfeited assets.

There has been ongoing debate over whether lawmakers should pass stricter crypto regulations, especially in light of the Trump family’s many crypto-related ventures.

Are there state tax differences for crypto?

Yes. Some states, like New York and California, tax crypto profits as income. Others, including New Hampshire, Texas, and Florida, do not tax individual income at all—meaning there is no state tax on crypto gains. These differences have made low-tax states especially attractive to crypto investors.

How are New Hampshire crypto laws changing?

Besides passing HB 302, New Hampshire has also taken broader steps to position itself as a crypto-friendly jurisdiction. The state does not tax capital gains or personal income and has exempted certain digital asset businesses from money transmitter licensing requirements.

In 2025, New Hampshire lawmakers considered a bill championed by Rep. Keith Ammon that would prohibit state and local governments from restricting the use of digital assets, self-custody of crypto, or in-home and industrial crypto mining. The bill also aimed to prevent discriminatory electricity rates for miners and create a dedicated blockchain dispute docket in state court.

Supporters said it helps diversify public funds and signals innovation. Opponents raised concerns about market volatility and the potential risks of using taxpayer dollars for speculative investments.

The bill was sent back to committee in 2025, but the debate continues.