A bill aimed at creating a Bitcoin strategic reserve for the state of Massachusetts received a lukewarm reception following its initial legislative review in eight months.
During a hearing on Tuesday with the Joint Committee on Revenue of the Massachusetts legislature, state Senator Peter Durant testified in support of the bill he introduced, entitled “an Act relative to a Bitcoin strategic reserve.”
The senator covered mainly the logistical aspects of the bill, which includes provisions for the state treasury to allocate up to 10% of the Commonwealth Stabilization Fund for crypto investments and permits the inclusion of any Bitcoin (BTC) or digital assets seized by state authorities into the reserve.
“This establishes a sensible diversification strategy, ensuring complete transparency, oversight, and risk management, without requiring any compulsory actions,” Durant remarked about the bill.
When the committee opened the floor for questions, there was no response from attendees regarding the BTC reserve proposal. The likelihood of the bill’s passage remains uncertain, especially since Democrats hold a supermajority in both the state House of Representatives and Senate, along with the governorship. Durant represents the Republican party.
Cointelegraph contacted Durant’s office for comments but had not received a reply by the time of publication.
Related: Massachusetts to hold hearing to consider Bitcoin reserve bill
In addition to Durant, Dennis Porter, CEO of the Bitcoin advocacy group Satoshi Action Fund, also presented testimony to the committee. Porter and his organization have urged multiple state legislators to take action in establishing a strategic BTC reserve.
On Durant’s bill and similar proposals from state Representative Christopher Worrell and state Senator Barry Finegold — specifically “an Act allowing for fiscal resilience through strategic investment in stable digital financial assets” — Porter characterized the initiative as “bipartisan in spirit,” noting the successful efforts of other states in passing analogous legislation.
“No state is better positioned to take the lead than the Commonwealth of Massachusetts, a historic financial center that pioneered America’s first mutual fund and remains a leader in financial innovation,” Porter stated.
Other US states are more optimistic about establishing crypto reserves
Introduced in February, Durant’s bill is among various state-level initiatives aimed at creating strategic BTC or digital asset reserves in response to the federal government’s initiatives set forth by former President Donald Trump’s executive order in March.
States such as Texas, Arizona, and New Hampshire have enacted laws concerning crypto reserves. However, other states where similar proposals were made have either rejected or postponed their passage, including Wyoming, South Dakota, North Dakota, Pennsylvania, and Montana.
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