Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
A committee in the Massachusetts state legislature is scheduled to hold a hearing to discuss a proposed Bitcoin strategic reserve bill. The legislation, initially introduced in February by Republican state Senator Peter Durant, would allow the commonwealth to deposit seized digital assets into a reserve and invest up to 10% of its Commonwealth Stabilization Fund in cryptocurrency. The hearing by the Joint Revenue Committee follows a recent update to the bill.
Legislative Details and Political Hurdles
Senator Durant’s bill is part of a broader initiative by Republican lawmakers across several U.S. states advocating for cryptocurrency and Bitcoin reserves. The proposed law specifically outlines that any Bitcoin or other digital asset seized by the state could be placed into this reserve.
However, the bill faces significant challenges in Massachusetts, where Democrats hold a supermajority in both the House of Representatives and the Senate, as well as the governorship. This political landscape suggests that any Republican-led legislation may struggle to gain traction.
Broader Trend of State and Federal Crypto Reserves
Massachusetts joins a growing number of U.S. state governments considering legislation to allow their treasuries to invest in crypto and Bitcoin. As of September, New Hampshire and Texas have already passed laws permitting them to hold digital assets as part of a strategic reserve plan.
Conversely, in 2025, several states including Montana, North Dakota, Pennsylvania, South Dakota, and Wyoming reportedly rejected or failed to advance similar bills. Proposed legislation in Michigan and Ohio, however, could still be signed into law.
At the federal level, President Donald Trump signed an executive order in March to establish a government stockpile of Bitcoin and other cryptocurrencies, partially through seized assets. Republican lawmakers are currently attempting to codify this order into law via Congress through the proposed BITCOIN Act.
Motivation for Bitcoin Reserves
The push for Bitcoin reserves is often motivated by a desire to hedge against inflation. Companies with significant exposure to crypto, such as Michael Saylor’s MicroStrategy, have been investing in Bitcoin and other digital assets for years with this strategy in mind. Reports suggested that many others followed their example in 2025 after President Trump’s executive order.
Outlook for Massachusetts Bill
The upcoming hearing marks a step forward for the Bitcoin strategic reserve bill in Massachusetts. While the legislation reflects a growing interest in digital asset integration at the state level, its ultimate passage remains uncertain given the state’s prevailing political dynamics.
