Massachusetts is set to take a closer look at whether the state should establish its own Bitcoin reserve, with legislators scheduled to hear arguments on a proposal first introduced earlier this year.
On Friday, the Joint Revenue Committee of the Massachusetts legislature will consider Senate Bill 1423, formally titled “An Act Relative to a Bitcoin Strategic Reserve,” filed in February by Republican state Senator Peter Durant. The legislation would permit the state treasury to deposit any Bitcoin or digital assets seized by authorities into a state-controlled reserve. It would also allow up to 10% of the Commonwealth Stabilization Fund — Massachusetts’ “rainy day” fund — to be allocated toward Bitcoin investments.
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Text of the proposed Bitcoin reserve bill as of Monday. Source: LegiScan
The move reflects a growing interest among Republican lawmakers across the United States in positioning Bitcoin as a strategic state asset. However, the bill faces long odds in Massachusetts, where Democrats maintain a supermajority in both the House and Senate, hold the governorship, and represent the state in Congress at every level.
A tough path in a Democratic stronghold
Given the political landscape, observers suggest the proposal is unlikely to advance beyond the committee stage. Democrats have historically been more cautious toward digital asset legislation, while Republicans have sought to frame Bitcoin adoption as both a financial and political hedge against inflation and federal monetary policies.
Still, Durant’s bill aligns with similar state-level proposals across the country. At the federal level, President Donald Trump signed an executive order in March creating a national Bitcoin reserve, largely funded by seized digital assets. Republican lawmakers are now working to codify that order into law through the BITCOIN Act.
Other states testing crypto reserves
Massachusetts joins a short list of states considering Bitcoin reserve bills. In 2025, Montana, North Dakota, Pennsylvania, South Dakota, and Wyoming either rejected or failed to advance similar measures. Meanwhile,
Michigan and Ohio are still weighing legislation that could allow their state treasuries to allocate funds into Bitcoin.
At the state and corporate level alike, Bitcoin has increasingly been pitched as a hedge against inflation and currency debasement. Michael Saylor’s Strategy Inc., for example, has accumulated over 640,000 BTC in recent years, while other firms have followed with smaller allocations.
Whether Massachusetts lawmakers move the bill forward remains uncertain, but the hearing marks another step in the national conversation about Bitcoin’s place in government treasuries.