Wyoming and Massachusetts are introducing legislation allowing state investments in Bitcoin

Lawmakers in Wyoming and Massachusetts recently introduced bills to allow state investments in Bitcoin (Bitcoin), bringing the total number of US states that have submitted such proposals to eight states.

In Wyoming, Rep. Jacob Wasserberger introduced House Bill 201, titled “Investing State Funds in Bitcoin,” which proposes that the state allocate up to 3% of its general funds to Bitcoin investments.

If enacted, the legislation would enable the Wyoming State Treasurer to include bitcoin among the managed assets of the state’s General Fund, Permanent Mineral Trust Fund, and Permanent Land Trust.

According to the Wyoming State Treasurer’s most recent investment report, the state had $30.8 billion in assets under management as of November 30, 2024. The largest trust, the Wyoming Permanent Mineral Trust, holds nearly $11.5 billion, allowing for potential Bitcoin investments exceeding $300. million dollars under the proposal. Guidelines.

Representatives Anne Lucas, Gary Brown, Lee Feiler, Daniel Singh, and Darren Smith, along with Wasserberger, co-sponsored the bill.

Wyoming Senator Cynthia Loomis here Wasserberger on Submitting the draft law He said Wyoming “has taken its first bold step toward a strategic Bitcoin reserve.”

She added:

“This progressive approach will benefit our state as we lead the nation in financial innovation!”

In Massachusetts, Senator Peter Durant introduced Senate Memorandum 422 (SD422), titled “An Act Relating to the Bitcoin Strategic Reserve.” The bill seeks to authorize the Massachusetts State Treasurer to invest a portion of the state’s public funds in Bitcoin.

Unlike Wyoming’s proposal, SD422 also includes provisions for investing in other digital assets, although it does not specify prerequisites for such investments.

The bill allows up to 10% of annual deposits in the Commonwealth Stabilization Fund to be invested in bitcoin or other digital assets. As of September 19, State Fund Recorded more than $8 billion in assets, which will allow the allocation of $800 million in Bitcoin.

Investment methods

Wyoming and Massachusetts bills establish strict security measures for managing Bitcoin investments.

Under the proposed legislation, state treasurers must ensure the secure custody of digital assets, including private encryption keys controlled exclusively by the state, encrypted storage environments, and secure, geographically diverse data centers.

The proposals also allow investments through regulated trust companies or approved exchange-traded products, provided they meet federal or state regulatory standards. Additionally, the bills require strong governance structures, disaster recovery protocols, and regular security audits to protect digital asset holdings.

Wyoming’s bill excludes hedging and investments in other digital assets with a market capitalization exceeding $500 billion. Meanwhile, the Massachusetts proposal would allow the treasurer to lend bitcoin or other digital assets to generate returns, provided it does not increase the state’s financial risks.

Up to 15 states

Wyoming and Massachusetts are the latest of eight states to have introduced Bitcoin-related legislation since December 2024.

Representatives Mike Capel, Giovanni Capriglione, and Derek Mirren presented plans for state investments in Bitcoin in Pennsylvania, Texasand Ohiorespectively in December New Hampshire and North Dakota It enacted similar moves earlier this month.

Dennis Porterco-founder and CEO of Satoshi Action FundAssists legislative efforts in various American states. It was previously reported that 12 states will introduce legislation this year to create a strategic bitcoin reserve.

However, on January 17, the number was increased by to be sure As many as 15 states will work on such a strategy in 2025.

mentioned in this article