Strategic Digital Asset Reserve Act of Maryland (HB 51)

HB 51 would have added State Finance and Procurement § 7-332 to create the Maryland Digital Asset Reserve Fund. The proposed fund would be held separately by the State Treasurer and accounted for by the Comptroller. The bill described two core purposes: retaining money seized and forfeited to the State under specified criminal procedure provisions, and serving as a reserve asset for Maryland through investment in cryptocurrency.

The proposal was narrower than a general authority to buy digital assets with any state money. Its principal source was state-seized and forfeited money tied to gambling violations under Criminal Procedure § 13-104. The fund could also receive appropriations, interest earnings, and other money accepted for the fund’s benefit, but expenditures would have been limited to those made in accordance with the State budget.

The bill defined “cryptocurrency” as a decentralized digital asset that uses a blockchain ledger, is secured by cryptographic technology, and has a market capitalization of at least $500 billion. That threshold made the proposal asset-limited by design. The Department of Legislative Services fiscal note stated that, as of January 2026, Bitcoin was the only digital asset with a market value of at least $500 billion that met the bill’s definition.

HB 51 would have provided that the fund may be used only to invest in cryptocurrency. It also stated that the State Treasurer would invest fund money in the same manner as other State money. The fiscal note observed that cryptocurrency was not then a permitted asset class under Maryland’s State investment policy and that the Treasurer would need to update investment policy and related regulations for cryptocurrency to become an authorized investment class.

For custody, the bill required cryptocurrency acquired as an investment to be held either by the State Treasurer through a secure platform created to store, manage, and safeguard institutional digital assets, or by a qualified custodian determined by the State Treasurer. Interest earnings of the fund would be credited back to the fund.

• Administrator: Maryland State Treasurer.
• Accounting role: Maryland Comptroller.
• Primary funding source: state-seized and forfeited gambling proceeds.
• Investment scope: cryptocurrency meeting the bill’s market-cap and technical definition.

HB 51 was pre-filed on October 15, 2025, introduced and read for the first time on January 14, 2026, and assigned to the House Economic Matters Committee. The bill record scheduled a February 3 hearing, canceled the original time, and then set the hearing for 1:30 p.m. Witness records show favorable, unfavorable, and informational testimony. The bill text stated an October 1, 2026 effective date if enacted, but the bill did not become an operative Maryland law during the 2026 Regular Session.