Massachusetts Bitcoin Reserve Bill Gets Cold Reaction at Hearing

A bill aimed at establishing a strategic reserve for Bitcoin in the US state of Massachusetts has received a tepid response following its first legislative action in eight months.

During a hearing of the Massachusetts Legislature’s Joint Committee on Revenue on Tuesday, state Sen. Peter Durant testified about the bill he sponsored, “An Act Relating to the Bitcoin Strategic Reserve.”

The lawmaker mostly discussed the logistical details of the bill, including letting state coffers use up to 10% of the federal stabilization fund to invest in cryptocurrencies and allowing any Bitcoin (BTC) or digital assets seized by state authorities to be added to reserves.

“This creates a prudent diversity tool that ensures adequate transparency, oversight and risk management without mandating any action,” Durant said in the bill.

After asking questions to the committee, no one responded to the BTC reserve proposal. It’s unclear what the chances of the bill passing the Legislature are, given that Democrats hold supermajorities in the state’s House and Senate and control the governor’s office. Durant is a Republican.

Cointelegraph reached out to Durant’s staff for comment but had not received a response as of press time.

Related: Massachusetts to hold hearings to consider Bitcoin reserve bill

In addition to Durant, the committee also heard testimony from Dennis Porter, CEO of the Bitcoin advocacy group Satoshi Nakamoto Action Fund. Porter and the group have petitioned many state lawmakers to take action to establish a Bitcoin strategic reserve.

Referring to Durant’s bill and similar legislation introduced by state Rep. Christopher Worrell and state Sen. Barry Finegold, an “act to achieve fiscal resiliency through strategic investments in stable digital financial assets,” Porter described the potential move as “bipartisan” and described work in other states across the country to pass similar bills.

“No state is better suited to provide leadership than Massachusetts, a historic financial center that pioneered the first mutual funds in the United States and remains at the forefront of financial innovation,” Porter said.

Other U.S. states are more bullish on establishing cryptocurrency reserves

Durant’s bill, introduced in February, is one of many state-level legislative avenues for the federal government to establish strategic BTC, or digital asset reserves, through U.S. President Donald Trump’s executive order in March.