Wyoming and Massachusetts Move Towards State Bitcoin Investments

By: Eva Baxter

Recently, Wyoming and Massachusetts have taken significant legislative steps toward allowing state investments in Bitcoin (BTC), joining a growing list of US states pursuing similar initiatives. This noteworthy move could potentially transform how states manage their public funds and symbolize a broader acceptance of cryptocurrencies as viable financial assets.

In Wyoming, Representative Jacob Wasserburger has introduced House Bill 201, named "State Funds-Investment in Bitcoin," which proposes that up to 3% of the state's public funds could be allocated to Bitcoin investments. This move aligns with Wyoming's established reputation as a leader in blockchain and cryptocurrency legislation. If the bill passes, it would authorize the Wyoming State Treasurer to incorporate Bitcoin into the assets managed for the state's general fund, permanent mineral trust fund, and permanent land fund.

The latest investment report from the Wyoming State Treasurer reveals the state manages a substantial portfolio worth $30.8 billion, with the Permanent Wyoming Mineral Trust Fund holding nearly $11.5 billion. Such a large investment base could facilitate Bitcoin investments exceeding $300 million under this proposal. With co-sponsors such as Representatives Ann Lucas, Gary Brown, Lee Filer, Daniel Singh, and Darin Smith, the bill highlights the collaborative effort to integrate Bitcoin into state investment strategies.

Meanwhile, in Massachusetts, Senator Peter Durant introduced Senate Docket 422 (SD422), titled "An Act Relative to a Bitcoin Strategic Reserve." This bill seeks to grant the Massachusetts State Treasurer the authority to invest a portion of the state's public funds in Bitcoin. Unlike Wyoming's proposal, this bill includes provisions for investments in other digital assets, though specific prerequisites for these investments have not been detailed. The SD422 would permit up to 10% of the annual deposits in the Commonwealth Stabilization Fund to be invested in Bitcoin or other digital assets, allowing for a substantial $800 million allocation in such investments, given the fund's $8 billion asset base.

Both bills have outlined strict security measures to protect these digital investments. State treasurers, under the proposed legislation, are required to ensure secure custody of digital assets through exclusive state control over cryptographic private keys, encrypted storage, and geographically diverse secure data centers. The enactment of these proposals could set precedence for other states contemplating similar plans.

The introduction of these bills adds Wyoming and Massachusetts to a list of states, including Pennsylvania, Texas, Ohio, New Hampshire, and North Dakota, that have introduced Bitcoin-related legislation since December 2024. This movement reflects an increasing institutional recognition of Bitcoin as a stable investment vehicle amid volatile financial markets.