Emily Walker
Massachusetts Republican Senator Peter Durant from Worcester County has proposed a bill to create a “Bitcoin strategic reserve.”
This initiative represents a notable advancement for cryptocurrency within a historically Democratic region, marking Massachusetts as the first “deep blue state” to entertain such legislation.
Support from Senator Durant
The proposed bill aims to establish a new fund called the Commonwealth Bitcoin Strategic Reserve, with oversight by the state treasurer.
Durant believes this legislation reflects Bitcoin’s increasing acceptance in mainstream finance, arguing that Massachusetts should consider investing in digital assets as part of its financial planning.
The draft allows the state treasurer to invest unallocated funds in Bitcoin and other digital currencies.
Importantly, the legislation enforces a limit, allowing investment in cryptocurrencies to a maximum of 10% of the Commonwealth Stabilization Fund’s total, which currently holds $9 billion.
Durant clarified that the bill does not suggest abandoning conventional assets altogether. “We’re not proposing to divest everything for bitcoin,” he noted. “However, we believe including it in the commonwealth’s portfolio makes sense.”
Awaiting Treasurer’s Response
The bill also provides provisions for the state treasurer to securely manage digital assets through qualified custodians or exchange-traded products (ETPs).
Additionally, it permits the treasurer to lend Bitcoin or other digital assets to earn further returns, as long as it does not elevate the state’s financial risks.
Although there is enthusiasm surrounding the bill, it has not yet been presented to Deb Goldberg, the state’s Democratic treasurer. A spokesperson for Goldberg’s office indicated that she has not formed an opinion on cryptocurrency but will review and respond to the proposal when needed.
This bill is part of a wider discussion on the role of cryptocurrency in state finances. Advocates like Durant see potential advantages, while critics, including prominent figures like Senator Elizabeth Warren, call for tighter regulations.
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