Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Digital Assets topic
No spam. Unsubscribe anytime.
Maryland panel hears bill to let treasurer hold seized funds in Bitcoin
Summary
Supporters told the House Judiciary Committee HB1389 would let the state treasurer place certain seized or designated funds into a state Bitcoin reserve fund to pursue long-term appreciation; opponents warned of volatility, environmental harms and that existing law and practice should guide handling of seized assets.
Delegate Young introduced House Bill 13‑89, the Strategic Bitcoin Reserve Act, proposing creation of a Maryland Bitcoin Reserve Fund that would allow the state treasurer to invest specified funds in Bitcoin.
The bill’s sponsor said the measure aims to treat Bitcoin as a strategic reserve asset. "The purpose of the bill today is to establish the Maryland Bitcoin Reserve Fund as a strategic reserve asset," Delegate Young told the committee, adding later that he would amend language so the treasurer would have discretion rather than a duty to invest.
Why it matters: supporters said the proposal could turn idle or seized digital assets into appreciating holdings and help diversify the state portfolio. Douglas Dennard, a digital‑asset consultant, argued the asset class has shown historic growth and could generate revenue for state priorities. "Bitcoin industry events can boost tourism, putting cash in local economies," Dennard said, urging a favorable report with legal safeguards.
Proponents said the bill was targeted to use specific source funds — for example, proceeds from gambling enforcement or seized assets — and that the state treasurer would retain control over custody and risk management. Eric Peterson, policy director of Satoshi Action Fund, described the bill as a cautious step Maryland could take to understand digital assets and noted other states and institutions are exploring similar approaches.
Opponents pressed on risk and structure. Jonathan Harris, a chartered financial analyst, testified in opposition, calling Bitcoin highly speculative and arguing present expectations about its returns depend on continued buyer demand. Harris said the technology and energy footprint raise public‑policy concerns and warned against exposing public assets to a volatile market.
Committee context and next steps: committee members questioned whether seized federal holdings (discussed during testimony) provided an appropriate model and whether funds would be "lockboxed" or used as revenue. Delegate Young said the bill did not currently lockbox coins and that the treasurer’s office would assess custodial and risk procedures; he also said he planned amendments changing mandatory to permissive language to work with the treasurer.
No formal action or vote on HB 13‑89 was recorded in the transcript; testimony concluded with the committee moving on to other bills.
