Massachusetts State Senator Peter Durant, a Republican from Worcester County, has introduced a bill to establish a "Bitcoin strategic reserve," marking a notable move toward integrating Bitcoin into the state’s financial strategy.

The proposed legislation would create the Commonwealth Bitcoin Strategic Reserve, managed by the state treasurer, to invest unallocated or uncommitted surplus funds into Bitcoin and other digital assets. 

To limit exposure, the bill caps these investments at 10% of the $9 billion Commonwealth Stabilization Fund.

Durant emphasized that the initiative is designed to complement traditional investments, not replace them. 

The legislation also allows the treasurer to securely hold digital assets through qualified custodians or exchange-traded products (ETPs) and to generate additional returns by lending the assets, provided such activities do not increase financial risk.

The proposal has yet to be reviewed by State Treasurer Deb Goldberg, who has not taken a position on Bitcoin. A representative from her office confirmed that she will assess the bill if formally presented.

This initiative arrives amid ongoing debates about Bitcoin’s role in public finance. Proponents argue it could diversify state investment strategies, while critics caution against the risks of volatile digital assets.

If adopted, this legislation could position Massachusetts as a leader in state-level Bitcoin integration, potentially influencing similar actions elsewhere.

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