Massachusetts Bill Could Allow State to Hold Bitcoin After Quiet Legislative Hearing

• Bill allows up to 10% of Stabilization Fund for crypto investment

• Seized Bitcoin and digital assets may be added to the state reserve

• Witness testimony included Satoshi Action Fund; no committee questions were asked

Massachusetts Bitcoin reserve bill: proposed state BTC reserve allowing up to 10% Stabilization Fund allocation, details and next steps explained — read more.

What is the Massachusetts Bitcoin reserve bill?

The Massachusetts Bitcoin reserve bill is proposed legislation sponsored by state Senator Peter Durant to authorize the Commonwealth to create a strategic Bitcoin reserve. The bill would permit the state treasury to allocate up to 10% of the Commonwealth Stabilization Fund for crypto investments and to deposit seized digital assets into a reserve for fiscal diversification and oversight.

How did the bill fare at the Joint Committee on Revenue hearing?

At a Tuesday hearing of the Joint Committee on Revenue, Senator Peter Durant presented the bill’s logistics and safeguards. After Durant’s testimony, no committee members asked questions. The silence leaves the bill’s prospects uncertain given the state’s Democratic supermajority in both chambers and control of the governorship.

State Senator Peter Durant speaking at a Tuesday hearing. Source: Massachusetts Legislature

Why does the bill propose using the Commonwealth Stabilization Fund?

The bill cites the Stabilization Fund as a prudent source to diversify state assets without mandating purchases. Using up to 10% is framed as a risk-managed approach with required transparency and oversight, allowing the treasury to adopt controls and reporting to limit potential fiscal exposure.

Who testified in support and what arguments were made?

Dennis Porter, CEO of the Bitcoin advocacy group Satoshi Action Fund, testified in support, describing the proposal as bipartisan and pointing to actions taken by other states. Porter emphasized Massachusetts’ financial history and potential leadership role in adopting a strategic BTC reserve. Official outreach requests to Senator Durant’s staff were noted but had not produced public comment at the time of reporting.

How does Massachusetts compare to other states on crypto reserves?

Other U.S. states have taken varied approaches. Texas, Arizona and New Hampshire enacted laws related to crypto reserves, while several states including Wyoming, South Dakota, North Dakota, Pennsylvania and Montana have delayed or rejected similar measures. Federal guidance from a March executive order has also influenced state-level activity.

What would the bill change in practice?

Practically, the bill would enable:

• Allocation of up to 10% of the Commonwealth Stabilization Fund to crypto investments.
• Transfer of seized Bitcoin or digital assets into a state-held reserve.
• Required transparency, reporting, and risk-management protocols for any holdings.

Frequently Asked Questions

Can the state add seized cryptocurrency to the reserve?

Yes. The bill permits confiscated Bitcoin and digital assets seized by state authorities to be deposited into the proposed strategic reserve, subject to governance and auditing provisions.

How much of the Stabilization Fund could be used?

The proposal specifies a cap of up to 10% of the Commonwealth Stabilization Fund for crypto investments, with oversight measures to manage risk and reporting requirements for transparency.

Key Takeaways

• Proposal scope: Senate bill would allow a strategic Bitcoin reserve funded by up to 10% of the Stabilization Fund.
• Hearing outcome: Senator Durant testified; no committee questions were asked, leaving legislative prospects unclear.
• Comparative context: Some states have enacted reserve laws while others have paused similar measures; federal guidance also influences state actions.

How could Massachusetts implement a Bitcoin reserve? (HowTo)

1. Define governance: set oversight, custodial and reporting rules.
2. Authorize funding: allocate up to 10% of Stabilization Fund under statute.
3. Establish custody and audit: choose custody model and regular audits for public transparency.
4. Integrate seized assets: create protocol to transfer state-seized crypto into the reserve.

Conclusion

The proposed Massachusetts Bitcoin reserve bill would create a structured path for the Commonwealth to hold Bitcoin or other digital assets within a state-managed reserve, capped at 10% of the Stabilization Fund and inclusive of seized assets. The hearing produced testimony but no follow-up questions, leaving the bill’s future unclear; stakeholders and lawmakers will watch subsequent committee activity and legislative steps closely.