Massachusetts Lawmakers Consider Bitcoin Reserve to Hedge State Funds

Massachusetts lawmakers will soon consider whether the state should create a Bitcoin reserve. A bill introduced earlier this year proposes using state funds and seized crypto assets to establish a strategic stockpile. The proposal comes as several U.S. states weigh similar measures, with mixed results across the country.

Lawmakers Set Hearing on Massachusetts Bitcoin Reserve Bill

Massachusetts lawmakers are set to hold a hearing on a bill that proposes creating a state Bitcoin reserve. The proposal, introduced in February by Republican Senator Peter Durant, will be discussed in a hearing by the Joint Revenue Committee.

The legislation calls for the creation of a Bitcoin strategic reserve in the state of Massachusetts. If approved, the legislation would allow the state treasury to invest up to 10% of the Commonwealth Stabilization Fund in Bitcoin and other digital assets. Seized cryptocurrency could also be added to the reserve.

The proposal is part of a broader push by Republican lawmakers across the country to integrate Bitcoin into state financial strategies. However, the chances of passage in Massachusetts remain uncertain.

Democrats hold a supermajority in both chambers of the legislature and control the governor’s office. The state’s entire congressional delegation also consists of Democrats, making it difficult for Republican-led measures to advance.

Massachusetts is one of only four U.S. states that refer to themselves as ‘commonwealths,’ although the designation has no legal distinction.

U.S. States and Federal Government Weigh Bitcoin Reserve Strategies

Across the country, similar bills have met mixed outcomes. New Hampshire and Texas are among the few states that have authorized their treasuries to hold Bitcoin as a reserve asset.

Meanwhile, states including Montana, North Dakota, Pennsylvania, South Dakota, and Wyoming rejected or failed to advance similar measures in 2025. Pending proposals in Michigan and Ohio could still move ahead, depending on political support.

The federal government has also taken steps toward formalizing crypto reserves. In March, President Donald Trump signed an executive order directing the establishment of a national Bitcoin and cryptocurrency stockpile, partly through seized assets. Republican lawmakers are seeking to codify this directive into law through the proposed BITCOIN Act.

Massachusetts Weighs Digital Assets as States Split on Crypto Strategy

Advocates argue that adding Bitcoin to state reserves could serve as a hedge against inflation and economic uncertainty. High-profile companies such as Michael Saylor’s MicroStrategy have long promoted this approach, and reports suggest that more firms adopted Bitcoin strategies in 2025 following the federal government’s policy shift.

While Massachusetts considers its next move, the debate reflects a growing divide in how states approach cryptocurrency. Some view it as an emerging tool for financial resilience, while others remain cautious about risks tied to volatility and regulation.