Pennsylvania has proposed a Bitcoin reserve bill, permitting up to 10% of state funds to be held in BTC to fight inflation and enhance financial resilience.
A measure has been proposed by the Pennsylvania House of Representatives to establish a strategic Bitcoin reserve for the state. The measure, which has been introduced by Republican Representative Mike Cabell, aims to allow the Pennsylvania treasury to invest up to 10% of its funds in Bitcoin.
Cabell characterized the bill as a method to combat inflation and allow the state to maintain an asset resilient to economic fluctuations, a strategy that BlackRock and Fidelity have recently implemented by investing in Bitcoin.
House Bill in Pennsylvania to Establish a State Bitcoin Reserve
Pennsylvania can safeguard its reserves from inflation by investing in Bitcoin, per Representative Cabell’s proposal. The ‘Pennsylvania Bitcoin Strategic Reserve Act’ is a bill that authorizes the state treasurer to invest up to 10% of the state’s General Fund, Rainy Day Fund, and State Investment Fund in Bitcoin. This development is significant because it offers a positive outlook for the price of Bitcoin.
This could result in a substantial investment in the cryptocurrency, given that the state’s General Fund is valued at over $9.7 billion.
Cabell stated that the state would be at the vanguard of the new financial system and more economically stable due to adopting Bitcoin. In an interview, he said,
“With the incorporation of Bitcoin into the reserves, we are not only shielded Pennsylvania from the effects of inflation but also enhancing the state as a financial powerhouse for the future.”
Support for Bitcoin (BTC) reserves at the state level is increasing
Pennsylvania’s Bitcoin reserve law is being introduced when the federal government and other states contemplate comparable measures. There is a growing optimism that a national Bitcoin reserve can be established during President-elect Donald Trump’s first year in office as he prepares to return to the White House.
Legislators pro-crypto, such as U.S. Senator Cynthia Lummis, have suggested that establishing a federal Bitcoin reserve could be a top priority for Trump during his first 100 days in office. With the assistance of Bitcoin ETFs, states such as Michigan and Wisconsin have begun to incorporate cryptocurrency investments into their pension funds, in addition to Pennsylvania.
The Impact of the Satoshi Action Fund on State-Level Bitcoin Legislation
The Satoshi Action Fund, a Bitcoin advocacy organization, provided input during the development of the Bitcoin Strategic Reserve Act. This organization has collaborated with lawmakers nationwide to advocate for Bitcoin as a legitimate asset class for state investment portfolios. Dennis Porter, the founder of Satoshi Action Fund, expressed confidence in the measure’s prospects, referencing the recent bipartisan support for another cryptocurrency-related bill in Pennsylvania.
The Bitcoin Rights bill, which the Pennsylvania House enacted in October, safeguards residents’ rights to self-custody digital assets and employs Bitcoin as a payment method. The Democratic-led House passed the measure with a substantial majority, and Porter anticipates that the Strategic Reserve Act will receive comparable bipartisan support.
If passed, the Bitcoin reserve measure could serve as a model for other states considering cryptocurrency investments. According to the Satoshi Action Fund, it is presently in discussions with legislators in ten additional states who are interested in introducing legislation of a similar nature.
