Massachusetts Weighs Bitcoin Reserve Bill as Lawmakers Prepare for Hearing

Massachusetts lawmakers are planning to hold a hearing on October 7 to consider a bill proposing a state Bitcoin reserve.

Massachusetts is set to debate whether to create a Bitcoin reserve as part of its state assets. 

The Joint Revenue Committee will hold a hearing on October 7 to discuss Senate Bill S.1967. The proposal, introduced by Republican Senator Peter Durant in February, would allow the state to allocate up to 10% of its stabilisation fund to Bitcoin.

Why the Bitcoin Reserve Bill Matters

Supporters believe a Bitcoin reserve could act as a form of “digital gold.” They argue that Bitcoin’s limited supply makes it a useful hedge against inflation and a way to diversify state assets.

Critics, however, are raising concerns about Bitcoin’s volatility. 

They also question whether public funds should be exposed to an asset that can see sharp price swings. Democratic lawmakers, who hold a supermajority in both chambers of the Massachusetts legislature, have voted for caution.

This said, the bill’s progress will hinge on whether lawmakers believe the benefits outweigh the risks. The October 7 hearing will bring together policymakers, economists and members of the public to examine both sides of the argument.

Background on the Bitcoin Reserve Debate

Bitcoin’s role in state finances is becoming a topic of discussion across the United States. 

Several states have looked into adding Bitcoin to their reserves. Texas and Utah have passed bills that allow limited BTC holdings. Wyoming introduced a bill authorising up to 3% of certain state funds to be invested in Bitcoin, with strict custody requirements.

At the federal level, President Donald Trump signed an executive order in March to create a national Strategic Bitcoin Reserve and a more general digital asset stockpile. 

Lawmakers are now considering the BITCOIN Act to formalise that reserve in law.

Massachusetts’ decision will be watched by many eyes in the sector. It could influence other states, especially those with similar political majorities, to reconsider their position on digital assets.

How the Bill Would Work

The proposed law allows Massachusetts to place Bitcoin into a designated reserve, alongside its traditional holdings like U.S. Treasury bonds. It also includes risk-management requirements to maintain transparency.

Durant’s bill further proposes that Bitcoin or other digital assets seized by the state be deposited into the reserve. 

This provision shows how other jurisdictions have included seized crypto into public coffers.

If approved, Massachusetts could become a pioneer among Democratic-leaning states in recognising Bitcoin as part of state-level fiscal strategy.       

National and International Context

Other U.S. states have had mixed experiences. While some advanced Bitcoin reserve bills, others, like Montana, North Dakota, Pennsylvania, South Dakota and Wyoming, either rejected or failed to advance similar measures this year.

Internationally, countries like Kyrgyzstan, the Philippines and Indonesia are also looking into Bitcoin reserves. Analysts note that competition for Bitcoin holdings may heat up as more governments consider it for strategic purposes.

Galaxy Digital’s head of research, Alex Thorn, recently suggested that Washington could formalise its own Strategic Bitcoin Reserve before the end of the year. This would mark a major shift in how the U.S. approaches the asset at the federal level.

The post Massachusetts Weighs Bitcoin Reserve Bill as Lawmakers Prepare for Hearing appeared first on Live Bitcoin News.