The push for state investments in Bitcoin (BTC) is gaining momentum, with lawmakers in Wyoming and Massachusetts introducing bills to authorize such investments. This brings the total number of US states with similar proposals to eight.
In Wyoming, Representative Jacob Wasserburger introduced House Bill 201, titled “State Funds-Investment in Bitcoin,” which suggests allocating up to 3% of the state’s public funds to Bitcoin investments. If passed, the legislation would allow the Wyoming State Treasurer to include Bitcoin in the assets managed for the state’s general fund, permanent mineral trust fund, and permanent land fund.
Wyoming’s latest State Treasurer investment report reveals that the state manages $30.8 billion in assets as of Nov. 30, 2024. The largest trust, the Permanent Wyoming Mineral Trust Fund, holds nearly $11.5 billion, potentially enabling Bitcoin investments exceeding $300 million under the proposed guidelines. The bill was co-sponsored by Representatives Ann Lucas, Gary Brown, Lee Filer, Daniel Singh, and Darin Smith.
Senator Cynthia Lummis commended Wasserburger for introducing the bill, stating that Wyoming is taking a bold step towards establishing a strategic Bitcoin reserve. She emphasized that this forward-thinking approach will benefit the state as it leads the nation in financial innovation.
In Massachusetts, Senator Peter Durant introduced Senate Docket 422 (SD422), titled “An Act Relative to a Bitcoin Strategic Reserve,” which seeks to authorize the Massachusetts State Treasurer to invest a portion of the state’s public funds in Bitcoin. Unlike Wyoming’s proposal, SD422 includes provisions for investments in other digital assets without specifying prerequisites for such investments.
The bill allows investing up to 10% of the annual deposits in the Commonwealth Stabilization Fund into Bitcoin or other digital assets. With the state fund registering over $8 billion in assets as of Sept. 19, this would allow for an $800 million allocation in BTC.
Both Wyoming and Massachusetts bills outline stringent security measures for managing Bitcoin investments, requiring secure custody of digital assets, encrypted storage environments, and geographically diversified secure data centers. The proposals also permit investments through regulated trust companies or approved exchange-traded products, subject to federal or state regulatory standards.
Wyoming’s bill excludes staking and investments in other digital assets with market capitalizations exceeding $500 billion, while Massachusetts’ proposal allows the treasurer to loan Bitcoin or other digital assets to generate returns, as long as it does not increase the state’s financial risk.
Wyoming and Massachusetts are the latest among eight states that have introduced Bitcoin-related legislation since December 2024. Dennis Porter, co-founder and CEO of the Satoshi Action Fund, is supporting legislative efforts in various US states, with up to 15 states expected to work on establishing a Bitcoin strategic reserve in 2025. With increasing interest from states across the country, the integration of Bitcoin into state investment portfolios could mark a significant shift in the financial landscape.