Bill > S2008

This bill introduces a comprehensive framework for the state to invest in and tax digital financial assets, particularly Bitcoin, with the goal of enhancing fiscal resilience and protecting state funds against inflation. The legislation defines key terms like "digital financial asset" and "secure custody solution" and establishes a 5% excise tax on digital currency revenues. The state treasurer would be authorized to invest up to 10% of public funds from specific accounts (including the General Fund and Commonwealth Stabilization Fund) in Bitcoin, with strict requirements for secure storage and custody. Digital assets can be held directly by the state treasurer using a secure, encrypted solution, through a qualified custodian, or via SEC-registered exchange-traded products. The bill mandates rigorous security protocols for handling digital assets, including geographically diversified storage, multi-party transaction authorization, and regular security audits. Taxpayers would be required to report digital asset income similarly to other income types, and the state treasurer would have the flexibility to loan digital assets to generate additional returns while maintaining financial risk management. The legislation aims to provide a structured, regulated approach to integrating digital assets into state financial strategies, offering potential protection against economic volatility and inflation.

Budget and Finance

https://malegislature.gov/Bills/194/S2008