Republican Senator Peter Durant of Worcester County, Massachusetts, has introduced legislation aimed at creating a “Bitcoin Strategic Reserve.”
The initiative represents an important step for cryptocurrencies in a traditionally Democratic stronghold, making Massachusetts the first “Deep blue state” to consider such legislation.
Senator Durant Champions Bitcoin
the invoice It is proposed to establish a separate fund known as the Commonwealth Bitcoin Strategic Reserve, which would be managed by the state treasurer.
The legislation recognizes the growing mainstream acceptance of Bitcoin, with Durant stressing that now is the time for the country to invest in the digital asset as part of its financial strategy.
According to the draft, the state treasurer will have the authority to invest in Bitcoin and other digital assets using unspent, unencumbered or uncommitted funds.
Notably, the proposed legislation includes a cap that limits investments in cryptocurrencies to no more than 10% of the total amount deposited in the Commonwealth Stabilization Fund, which currently stands at $9 billion.
Durant stressed that the legislation does not call for complete divestment from traditional assets. “It’s not like we’re saying strip everything away and put it in bitcoin,” he said. “But we think this makes sense as part of the Commonwealth portfolio.”
Treasurer Goldberg has not yet commented on the matter
The bill also allows the state treasurer to securely hold digital assets through qualified custodians or in the form of exchange-traded products (ETPs).
Furthermore, it gives the Treasurer the ability to lend Bitcoin or other digital assets to generate additional returns, provided that this does not increase the country’s financial risks.
Despite the enthusiasm for the bill, it has not yet been discussed with Deb Goldberg, state treasurer and Democrat. Goldberg’s office spokesman He said Commonwealth Beacon said the Treasurer has not yet taken a position on cryptocurrency but will review the proposal and provide comments on it when asked.
The introduction of this draft law comes amid a broader debate about the role of cryptocurrency in the state’s finances. While some, like Durant, defend its potential benefits, others, including prominent figures like Senator Elizabeth Warren, have expressed doubts and called for stricter regulation.
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