Pennsylvania lawmakers introduced a bill to allocate up to 10% of state reserves, about $7 billion, to Bitcoin as a hedge against inflation.
Bitcoin is being integrated into the strategic fiscal reserves of an increasing number of U.S. states.
The Pennsylvania Bitcoin Strategic Reserve Act, a bill that would enable the state’s treasury to maintain Bitcoin on its balance sheet, was introduced by Pennsylvania house representatives on November 14.
The measure mandates that Pennsylvania allocate up to 10% of its approximately $7 billion in state-owned reserve assets to diversify its investments and mitigate inflation. The bill was developed in collaboration with the Satoshi Action Fund (SAF), a non-profit organization that advocates for Bitcoin.
Pennsylvania Lawmakers Plans on Bitcoin Reserve
Representative Mike Cabell, a proponent of the measure, stated, “The Pennsylvania Bitcoin Strategic Reserve Act is a visionary step toward securing our state’s financial future.” “By integrating Bitcoin into our reserves, we’re not only protecting Pennsylvania from inflation’s relentless impact but also positioning our state as a leader in financial resilience and innovation.”
The Pennsylvania House passed a bill last month that enshrines the right of residents to self-custody digital assets and to use Bitcoin as a means of payment. The bill was passed with a majority of 176 votes to 26. Until the measure is signed into law by Governor Josh Shapiro, it must first pass the state senate.
The (SAF) assisted in the drafting of both laws and aspires to use them as a model for future states to introduce legislation that is crypto-friendly. SAF stated that it is presently in discussions with ten additional states.
“This Act not only benefits Pennsylvania’s economy but also sets a new standard for other states and nations seeking to adopt innovative strategies against inflation,” according to Dennis Porter, the chief executive officer of SAF. “With a strategic Bitcoin reserve, the state of Pennsylvania can protect its economy and its people from inflation and financial hardship.”
National Bitcoin Reserve
The decision was made in the wake of Donald Trump’s victory in the most recent U.S. presidential election. Trump has pledged that none of the U.S. government’s Bitcoin, which is a collection of assets seized through law enforcement actions and totals over $19 billion, will be sold during his second term in the Oval Office.
A resolution advocating for the establishment of a national strategic Bitcoin reserve was also introduced by Senator Cynthia Lummis, a long-standing ally of the web3 industry, on July 31. The government is required to accumulate up to 200,000 Bitcoin annually for a period of five years under the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2024.
“In the wake of Trump’s election victory, we intend to establish a strategic Bitcoin reserve,” Lummis tweeted.
The Defiant’s crypto price feeds indicate that Bitcoin’s price has increased by 18.5% over the past seven days.
States in the United States are beginning to adopt Bitcoin.
Pennsylvania is not the sole state that is considering adopting cryptocurrency.
The State of Michigan Retirement System disclosed on November 4 that it had acquired $11.1 million in Ethereum ETF shares, which followed a $6.6 million acquisition of Bitcoin ETF shares in July.
Jimmy Patronis, Florida’s Chief Financial Officer, encouraged the State Board of Administration to evaluate the feasibility of incorporating digital assets into its retirement fund on October 30. Patronis also suggested that Florida would increase its $800 million digital asset holdings in the event that Trump were to secure the presidency.
A SEC filing on May 14 also disclosed that the state pension fund of Wisconsin has acquired spot Bitcoin ETF shares valued at $163 million.
