Bill
S 1967
Creates the Commonwealth Bitcoin Strategic Reserve, enabling the State Treasurer to invest unspent funds in Bitcoin/digital assets with secure custody and guardrails.
Short title
- The bill text identifies itself as the "Protection for Reservation Occupants against Trafficking and Evasive Communications Today Act of 2025" or the "PROTECT Act of 2025," but the substantive text filed as Senate Docket No. 422 (Senate No. 1967) is titled "An Act relative to a bitcoin strategic reserve." The filing shows Peter J. Durant as the petitioner/presenter.
Purpose and intent
- Establish a Commonwealth Bitcoin Strategic Reserve administered by the State Treasurer and authorize limited investment of public funds in Bitcoin and other digital assets. The stated purpose is to create a state-held reserve of Bitcoin/digital assets that can be managed, held in secure custody, and (under conditions) loaned to generate returns for the Commonwealth.
Key provisions
- Definitions: The bill defines key terms including “Bitcoin,” “Digital Asset,” “Exchange-traded product,” “Private key,” “Qualified custodian,” and “Secure custody solution.” A secure custody solution must meet detailed technical and governance requirements (encrypted private keys, no smartphone storage, geographically diversified secure data centers, multiparty governance, audit/penetration testing, logging, and disaster recovery).
- Fund creation: Establishes a separate fund on the Commonwealth’s books called the “Commonwealth Bitcoin Strategic Reserve,” to be administered by the State Treasurer.
- Investment authority and limit: The Treasurer may invest unexpended, unencumbered, uncommitted funds in Bitcoin/digital assets for the Reserve. Annual investment cannot exceed 10% of the total amount being deposited into the Commonwealth Stabilization Fund as allocated by the legislature. Seized Bitcoin/digital assets may be deposited into the Reserve.
- Custody options: Assets must be held directly by the Treasurer using a secure custody solution via a qualified custodian, or held indirectly through an exchange-traded product issued by an investment company registered in the Commonwealth.
- Lending: The Treasurer may loan Bitcoin/digital assets to generate returns if doing so does not increase financial risk to the Commonwealth; the Treasurer must promulgate regulations governing such lending.
- Security & oversight: Custody providers must undergo regular code audits and penetration testing, maintain disaster recovery protocols, enforce multiparty transaction authorization, and log user actions.
Who would be affected
- State government (Treasurer’s office) — new operational duties and regulatory authority.
- Commonwealth Stabilization Fund and related public funds — potential allocation limits and exposure to crypto volatility.
- Qualified custodians, exchanges, custodial technology vendors, and auditing firms — new business opportunities and compliance obligations.
- Taxpayers and budget stakeholders — potential fiscal upside and downside from volatile digital-asset holdings.
- Law enforcement/forfeiture processes — seized digital assets could be routed to the Reserve.
Potential fiscal and policy impacts (high-level)
- Introduces cryptocurrency market exposure to state assets, with potential for both gains and losses.
- Imposes cybersecurity, audit, and governance requirements intended to mitigate some custody risks.
- Requires administrative/regulatory capacity at the Treasurer’s office (rulemaking, oversight of custodians, loan programs).
Procedural status and notes
- Docket/filed as Senate Docket No. 422 (filed 01/13/2025) and presented by Peter J. Durant. Metadata supplied shows the bill was introduced 06/05/2025 and status listed as "REFERRED TO HEALTH." Records also show referrals to Revenue and Indian Affairs and hearings scheduled for 10/07/2025. The provided legislative-action metadata contains inconsistent dates and committee referrals; the docketed bill text above is the primary source for substantive provisions. Sponsors listed in the materials differ from the petitioner listed in the bill text.
Compiled from official sources — confirm details with the bill’s official record.
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