tl;dr
Lawmakers in Wyoming and Massachusetts have introduced bills to allow state investments in Bitcoin, bringing the total number of US states with such proposals to eight. Wyoming's bill, introduced by Representative Jacob Wasserburger, proposes allocating up to 3% of the state's public funds to Bitcoi...
Wyoming and Massachusetts have proposed bills to allow state investments in Bitcoin, potentially sparking a trend among US states. This brings the total number of states with such proposals to eight. Wyoming's bill suggests allocating up to 3% of the state's public funds to Bitcoin investments, which could exceed $300 million. Massachusetts' bill allows investments in Bitcoin and other digital assets, permitting up to 10% of annual deposits in the Commonwealth Stabilization Fund to be allocated to Bitcoin or other digital assets. Both bills emphasize stringent security measures for managing Bitcoin investments and are part of a larger trend, with up to 15 states expected to work on similar strategies in 2025.
In detail, in Wyoming, Representative Jacob Wasserburger's bill proposes allowing the state to allocate up to 3% of its public funds to Bitcoin investments. If enacted, the legislation would permit the Wyoming State Treasurer to include Bitcoin among the assets managed for the state’s general fund, permanent mineral trust fund, and permanent land fund. Wyoming's State Treasurer managed $30.8 billion in assets as of Nov. 30, 2024, with the largest trust holding nearly $11.5 billion. Co-sponsored by a group of representatives, Senator Cynthia Lummis praised the bill, stating that it marks Wyoming's "first bold step toward a strategic Bitcoin reserve."
Meanwhile, in Massachusetts, Senator Peter Durant's bill seeks to authorize the state treasurer to invest a portion of the public funds in Bitcoin and other digital assets. The proposed bill also includes provisions for investments in other digital assets, allowing up to 10% of the annual deposits in the Commonwealth Stabilization Fund to be allocated to Bitcoin or other digital assets, with the state fund currently holding over $8 billion in assets.
Both bills outline strict security measures for managing Bitcoin investments, including secure custody of digital assets, geographically diversified secure data centers, regulated trust companies, and disaster recovery protocols. While Wyoming's bill excludes staking and investments in digital assets with market capitalizations exceeding $500 billion, Massachusetts' proposal permits the treasurer to loan Bitcoin or other digital assets to generate returns, provided it does not increase the state’s financial risk.
Wyoming and Massachusetts are part of a larger trend among eight states that have introduced Bitcoin-related legislation since December 2024. Efforts to establish a Bitcoin strategic reserve are gaining momentum, with up to 15 states expected to work on such a strategy in 2025.