New Hampshire Rejects Bitcoin Bond Plan As Circle Secures Federal Trust Bank Approval -

A proposed $100 million Bitcoin-backed bond issuance failed in New Hampshire, while Circle advanced its federal banking ambitions and Robinhood’s layer-2 network saw early inflows.

New Hampshire officials have rejected a proposal to issue $100 million in Bitcoin-backed bonds, halting one of the most closely watched state-level crypto finance initiatives in the United States. The decision came as other parts of the crypto sector marked notable developments, including Circle’s approval to establish a federally regulated national trust bank and early activity on Robinhood’s new layer-2 network.

New Hampshire Council Votes Down Bitcoin-Backed Bonds

New Hampshire’s five-member executive council voted 3-2 against the Bitcoin-backed bond proposal, according to a [Cointelegraph report](https://cointelegraph.com/news/what-happened-in-crypto-today?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound). The plan had previously received support from Governor Kelly Ayotte and approval from the New Hampshire Business Finance Authority, but failed to secure enough backing from the council.

The proposed structure would have involved a $100 million bond issuance supported by Bitcoin collateral. CleanSpark, a publicly listed Bitcoin mining company, was expected to provide the Bitcoin backing for the bonds, according to the report.

The vote represents a setback for New Hampshire’s broader crypto policy agenda. The state had already attracted attention from digital asset advocates after lawmakers approved a Bitcoin reserve law in 2025, placing it among the more crypto-friendly jurisdictions in the US at the state level.

State representative Keith Ammon criticized the council’s decision, calling it “short-sighted” and urging officials to reconsider the proposal. Supporters had framed the plan as a way to combine traditional public finance tools with digital asset collateral, while critics and cautious officials appeared unwilling to advance the structure at this stage.

State-Level Crypto Finance Faces Political Limits

The rejection highlights the uneven pace of crypto adoption within US public finance. While several states have explored Bitcoin reserves, blockchain infrastructure and digital asset legislation, initiatives that directly tie public financing to crypto collateral remain politically sensitive.

Bitcoin-backed bonds have been discussed in different jurisdictions as a way to raise capital while gaining exposure to digital assets or using crypto holdings as a form of credit support. However, such structures can raise concerns about volatility, custody, risk management and taxpayer exposure.

In New Hampshire’s case, the vote shows that legislative or executive interest in Bitcoin does not automatically translate into approval for more complex financial instruments. Even in a state with a crypto-friendly reputation, the council’s narrow rejection suggests officials remain divided over how far public institutions should go in integrating Bitcoin into financing programs.

The decision may also be watched by other states considering similar initiatives. A successful bond issuance could have created a model for other jurisdictions; its rejection may instead slow momentum for Bitcoin-linked public debt proposals, at least until clearer frameworks or additional safeguards emerge.

Circle Wins Approval for National Trust Bank

In a separate development, Circle received final approval to establish a federally regulated national trust bank, according to the same report. Circle is best known as the issuer of USDC, one of the largest US dollar-backed stablecoins in the crypto market.

The approval marks a significant regulatory milestone for the company, which has sought to position itself as a compliant infrastructure provider for digital dollars and blockchain-based payments. A national trust bank charter can provide a federally supervised structure for certain custody and trust activities, although the specific scope of Circle’s approved operations was not detailed in the report.

Circle’s approval comes during a period of heightened scrutiny of stablecoin issuers, particularly around reserves, redemption rights and banking relationships. For stablecoin companies, regulated banking or trust structures may help address concerns from institutions and policymakers about oversight and operational resilience.

The development also reflects a broader shift in the stablecoin sector, where leading issuers are increasingly seeking formal regulatory status rather than operating solely through partnerships with traditional banks. For Circle, federal trust bank approval could strengthen its position with institutional clients and counterparties that require regulated service providers.

Robinhood Layer-2 Network Tops $70 Million in Bridged Ether

Robinhood’s new layer-2 network also recorded early traction, surpassing $70 million in bridged Ether during its first week, according to the report. The milestone indicates initial user activity on the network as the brokerage and crypto platform expands further into blockchain infrastructure.

Layer-2 networks are designed to process transactions more efficiently than Ethereum’s base layer while still relying on Ethereum for settlement or security in various ways. Robinhood’s entry into the sector signals continued interest from consumer-facing financial platforms in owning more of the crypto user experience, rather than only offering access to third-party assets.

The $70 million figure reflects bridged Ether, meaning users moved ETH onto the network to interact with applications or services available there. Early bridging activity does not necessarily indicate sustained adoption, but it provides an initial measure of user interest after launch.

Together, the day’s developments show the crypto industry moving along multiple tracks: public-sector Bitcoin experiments are still facing political resistance, stablecoin companies are pursuing deeper regulatory integration, and major retail platforms are building blockchain networks aimed at broad consumer use.

Sources: – [Cointelegraph](https://cointelegraph.com/news/what-happened-in-crypto-today?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound) – [Cointelegraph: New Hampshire Bitcoin Bonds](https://cointelegraph.com/news/new-hampshire-votes-against-bitcoin-bonds)