Bitcoin enters state treasuries as the DOJ steps back — Coincidence or coordinated shift?
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New Hampshire and Florida formalize Bitcoin reserve frameworks for public funds and treasury reserves.
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DOJ not in the business of crypto regulation via prosecution anymore, shifting focus solely to criminal misuse of digital assets.
Two U.S. states are making bold financial moves right now.
New Hampshire and Florida have advanced bills allowing state treasuries to invest public funds in Bitcoin [BTC] and other high-market-cap digital assets.
These decisions come days after the U.S. Department of Justice (DOJ) announced it would halt prosecution against crypto exchanges and related services for regulatory breaches.
Bitcoin is now a viable investment for state treasuries as DOJ pivots from regulation by prosecution to focusing on criminal misuse of digital assets.
Timing is no coincidence
This alignment signals a synchronized shift between state and federal bodies towards normalizing digital assets in government finance.
On 10 April, New Hampshire’s House of Representatives passed HB302 by a narrow vote of 192–179. The bill empowers the state treasurer to allocate up to 10% of public funds to eligible digital assets, stablecoins, and precious metals.
However, the condition is that the assets must meet strict eligibility criteria such as a market cap exceeding $500 billion averaged over the prior year.
The legislation mandates that assets must be either held directly by the treasurer, custodied by a regulated institution, or purchased through exchange-traded products.
Florida follows suit
Meanwhile, Florida’s House Insurance and Banking Committee unanimously advanced its own digital reserves bill. The state formally took a step in the same direction, albeit with a bold operational twist.
The bill not only approves Bitcoin and other high-cap digital assets for treasury investment, but it also codifies Bitcoin custody and loaning directly into state statute.
States step in as the Feds step back
The synchronization of these policies across state lines suggests a broader political trend. U.S. states are looking to assert digital asset autonomy while the federal government recalibrates its crypto enforcement priorities.
Earlier this week, Deputy Attorney General Todd Blanche issued a four-page memo which confirmed that the DOJ would disband its National Cryptocurrency Enforcement Team (NCET).
The Department will no longer target exchanges, mixers, or wallets for unintentional regulatory violations.
“The Department of Justice is not a digital assets regulator.”
This shift was reinforced by the removal of criminal liability tied to registration breaches and unlicensed money transmitting – A legal basis previously used against many platforms.
Prosecutors are now instructed to only pursue cases where individuals use crypto for crimes like terrorism, narcotics trade, or financial fraud.
The DOJ’s move follows President Trump’s Executive Order 14178, which explicitly rejects “regulation by prosecution” in the digital asset space.
From policy to Bitcoin reserve strategy
The DOJ’s pullback shifts liability from platforms to individuals. Its disbanding of NCET and Trump’s pardon of BitMEX executives has been illustrative of a softer federal stance.
With enforcement bodies scaled back, states like Florida and New Hampshire are seizing the moment. In fact, the convergence of these legislative actions with federal de-escalation marks a turning point.
The line between crypto and statecraft is vanishing fast. And, it’s the states leading the charge.
Conclusion
As Bitcoin becomes an investment option for state treasuries, the landscape for digital assets in U.S. governance is changing rapidly. This coordinated maneuver by states amidst a federal withdrawal indicates a strategic approach to integrate cryptocurrencies into public finance. Observers will need to keep a close eye on how these developments might influence the broader market dynamics and regulatory environment.
