Republican Senator Peter Durant of Worcester County, Massachusetts, has introduced laws geared toward establishing a “Bitcoin strategic reserve.” 

This initiative marks a big step for cryptocurrency in a historically Democratic stronghold, because it makes Massachusetts the primary “deep blue state” to think about such laws.

Senator Durant Champions Bitcoin

The bill proposes the creation of a separate fund often known as the Commonwealth Bitcoin Strategic Reserve, which can be administered by the state treasurer. 

The laws acknowledges Bitcoin’s growing mainstream acceptance, with Durant asserting that the time has come for the state to speculate in digital assets as a part of its financial strategy.

In keeping with the draft, the state treasurer would have the authority to speculate in Bitcoin and other digital assets using funds which are unspent, unencumbered, or uncommitted. 

Notably, the proposed laws features a cap limiting investments in cryptocurrencies to not more than 10% of the full amount deposited within the Commonwealth Stabilization Fund, which currently stands at $9 billion.

Durant emphasized that the laws doesn’t advocate for an entire divestment from traditional assets. “It’s not like we’re saying divest all the pieces and put it into bitcoin,” he stated. “But we do imagine it does make sense as a portion of the commonwealth’s portfolio.”

Treasurer Goldberg Yet To Weigh In

The bill also allows the state treasurer to carry digital assets securely through qualified custodians or in the shape of exchange-traded products (ETPs). 

Moreover, it grants the treasurer the power to loan Bitcoin or other digital assets to generate additional returns, provided it doesn’t increase the state’s financial risk.

Despite the passion for the bill, it has not yet been discussed with Deb Goldberg, the state treasurer and a Democrat. A spokesperson for Goldberg’s office told CommonWealth Beacon that the treasurer has yet to take a position on cryptocurrency but will review and supply feedback on the proposal when asked.

The introduction of this bill comes amid a broader debate about cryptocurrency’s role in state funds. While some, like Durant, advocate for its potential advantages, others, including distinguished figures like Senator Elizabeth Warren, have expressed skepticism and called for more stringent regulations.

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