Massachusetts Bitcoin Reserve Bill Receives Lukewarm Response at Hearing

Updated (October 9, 7:15 PM UTC): This article has been updated with a response from Peter Durant.

A bill aimed at establishing a Bitcoin Strategic Reserve in the US state of Massachusetts received a lukewarm response after the first legislative action in eight months.

At Tuesday’s hearing of the Massachusetts General Assembly’s Joint Committee on Ways and Means, State Senator Peter Durant testified about his proposed bill, the Bitcoin Strategic Reserve Act.

Lawmakers focused on the bill’s operational details, including allowing state treasuries to use up to 10% of federal stabilization funds to invest in cryptocurrencies and allowing state authorities to add seized Bitcoin (BTC) and other digital assets to reserves.

“This creates a prudent diversification tool that ensures full transparency, oversight and risk management without forcing action,” Durant said of the bill.

After questions from the committee began, none of those present responded to the BTC reserve proposal. It’s unclear how likely the bill will pass Congress, given that Democrats hold supermajorities in both chambers of Congress and control the governor’s office. Durant is a Republican.

“We have had great conversations with our colleagues about the possibility of bringing Bitcoin to Massachusetts, and we are working hard to move this forward with others who have introduced similar legislation,” Durant told Cointelegraph. “Lawmakers have been actively engaged and open throughout this process, and we are focused on continuing to educate all parties.”

The Massachusetts lawmaker said the committee has 60 days starting Tuesday to bring the bill forward or send it for further review, suggesting movement could occur by early December.

Related: Massachusetts holds public hearing to consider Bitcoin preparation bill

In addition to Durant, the committee heard testimony from Dennis Porter, CEO of the Bitcoin advocacy group Satoshi Action Fund. Mr. Porter and his group petitioned numerous state legislatures to take action toward establishing a strategic BTC reserve.

Regarding the Durant bill and a similar bill proposed by state Rep. Christopher Worrell and state Sen. Barry Feingold, the Enabling Fiscal Resilience Through Strategic Investment in Stable Digital Financial Assets Act, Porter described the potential move as “bipartisan in nature,” and described efforts other U.S. states have made to pass similar legislation.

“There is no better state to lead than Massachusetts, a historic financial center that pioneered America’s first mutual fund and continues to be at the forefront of financial innovation,” Porter said.

Other US states are more bullish on creating crypto reserves

Durant’s bill, introduced in February, was one of a number of state-level legislative efforts for the federal government to create a Strategic BTC, or Digital Asset Reserve, through President Donald Trump’s March executive order.