The Massachusetts Bitcoin strategic reserve bill would allow seized Bitcoin and other digital assets to be deposited into a state reserve and permit the treasury to invest up to 10% of the Commonwealth Stabilization Fund in crypto, pending approval by the legislature and committee review.
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Bill scope: deposit seized crypto into a state Bitcoin reserve.
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Treasury may invest up to 10% of the Commonwealth Stabilization Fund in digital assets under the proposal.
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Hearing set before the Joint Revenue Committee; Democrats hold a supermajority in Massachusetts.
Bitcoin strategic reserve Massachusetts bill advances to committee; read COINOTAG summary for implications and next steps.
What is the Massachusetts Bitcoin strategic reserve bill?
The Massachusetts Bitcoin strategic reserve bill is proposed state legislation that would allow seized Bitcoin and other digital assets to be placed into a statewide reserve and authorize the state treasury to invest up to 10% of the Commonwealth Stabilization Fund in crypto. The bill is under review by the Joint Revenue Committee and faces a challenging political environment.
How does the bill propose the reserve would operate?
The proposal permits “any Bitcoin or other digital asset seized by the commonwealth” to be deposited into a dedicated reserve. It directs the state treasury to manage the reserve and sets a cap of 10% on allocations from the Commonwealth Stabilization Fund for crypto investments. The language aims to formalize custody and investment protocols for seized digital assets while defining fiscal limits.
Text of the proposed Bitcoin reserve bill as of Monday. Source: LegiScan
Introduced by a Republican lawmaker in February, the legislation may be unlikely to get traction in Massachusetts’ legislature, where Democrats hold a supermajority.
Why is the proposal politically challenging in Massachusetts?
Massachusetts’ legislature is controlled by Democrats with a supermajority in both chambers and a Democratic governor. That partisan composition makes passage of a Republican-led crypto bill unlikely without bipartisan support. The bill must also clear the Joint Revenue Committee and secure votes in both chambers before becoming law.
When will the Joint Revenue Committee hear the bill?
The Joint Revenue Committee scheduled a hearing to consider the bill following its introduction in February. Committee hearings are the first formal step in the legislative process and determine whether a bill advances to a chamber vote, is amended, or stalls.
How does this bill compare to other state-level crypto reserve efforts?
Several U.S. states have introduced or considered laws allowing state treasuries to hold Bitcoin or crypto reserves. As of September 2025, only a limited number of states have enacted such laws. Proposed measures in other states have seen mixed outcomes—some passed, others failed or remained pending—highlighting a fragmented state-by-state approach to crypto reserve policy.
What are the fiscal limits and safeguards in the proposal?
The bill sets a clear fiscal cap by limiting treasury investments to 10% of the Commonwealth Stabilization Fund. It also centers seized assets as the initial funding source, which proponents argue reduces new appropriations. Detailed governance, custody, and risk-disclosure requirements would be determined if the bill advances through committee and amendment.
Frequently Asked Questions
Will the bill let Massachusetts buy new Bitcoin with tax revenue?
No. The proposed language prioritizes seized Bitcoin and other seized digital assets for the reserve and caps treasury purchases at 10% of the Commonwealth Stabilization Fund, rather than allowing unrestricted use of general tax revenue.
Does the bill affect federal policy on seized crypto assets?
State legislation does not change federal policy. Federal initiatives, including a 2025 executive order and federal proposals discussed as the BITCOIN Act, are separate and operate at the national level. State laws would govern only state-controlled seized assets and state treasury investments.
Who authored the bill and has the sponsor commented?
The bill was introduced by state Senator Peter Durant. The senator’s office had not provided a public response to requests for comment at the time of publication.
Key Takeaways
- Proposal scope: Allows seized crypto to fund a state Bitcoin reserve and authorizes treasury investment.
- Fiscal limit: Caps investments at 10% of the Commonwealth Stabilization Fund to limit exposure.
- Political outlook: Passage faces headwinds due to Democratic supermajority in Massachusetts.
Conclusion
The Massachusetts Bitcoin strategic reserve bill seeks to formalize the treatment of seized digital assets and permit limited treasury investment, but political dynamics make passage uncertain. COINOTAG will monitor committee actions and legislative developments and provide updated reporting as the bill advances through the process.
