Pennsylvania Proposes Bitcoin Reserve Bill to Allocate Up to 10% of State Funds in BTC
Key Highlights:
- Pennsylvania introduces a bill to create a state Bitcoin reserve, allocating up to 10% of its funds to BTC.
- The $9.7 billion General Fund could see an investment of up to $970 million in Bitcoin if the bill is passed.
- Backed by the Satoshi Action Fund, the proposal reflects growing bipartisan support for Bitcoin as a financial hedge.
The Pennsylvania House of Representatives has proposed the Pennsylvania Bitcoin Strategic Reserve Act, a bill aimed at establishing a state-held Bitcoin reserve. Presented by Republican Representative Mike Cabell, the legislation seeks to allow the Pennsylvania Treasury to invest up to 10% of its General Fund, Rainy Day Fund, and State Investment Fund in Bitcoin.
A Step Toward Financial Stability and Inflation Defense
Representative Cabell explained that the bill is designed to protect the state’s reserves against inflation and to provide economic resilience through Bitcoin’s deflationary properties. He highlighted that major financial institutions like BlackRock and Fidelity have already adopted Bitcoin as part of their investment strategies.
With Pennsylvania’s General Fund valued at over $9.7 billion, the legislation could result in a substantial Bitcoin investment, potentially reaching $970 million. Cabell stated:
“Incorporating Bitcoin into our reserves not only shields Pennsylvania from inflation but also positions the state as a leader in the emerging financial system.”
National and State-Level Momentum for Bitcoin Reserves
The proposal comes at a time of growing interest in state and federal Bitcoin reserves. President-elect Donald Trump has signaled potential support for a national Bitcoin reserve during his first term, while pro-crypto lawmakers like Senator Cynthia Lummis advocate for integrating Bitcoin into federal investment strategies.
Several states, including Michigan and Wisconsin, are already exploring cryptocurrency investments in pension funds, supported by Bitcoin ETFs. This trend reflects the increasing adoption of digital assets across state-level financial systems.
Satoshi Action Fund’s Role in Advancing Legislation
The bill was crafted with input from the Satoshi Action Fund, a prominent Bitcoin advocacy group that has been instrumental in promoting Bitcoin adoption among lawmakers. Dennis Porter, the group’s founder, expressed optimism about the bill’s bipartisan support, pointing to recent successes such as Pennsylvania’s Bitcoin Rights Bill, which passed with a strong majority in October.
The Strategic Reserve Act builds on this momentum, aiming to enhance Pennsylvania’s financial resilience and pave the way for similar legislation in other states. Porter noted that the Satoshi Action Fund is collaborating with lawmakers in 10 additional states to introduce comparable initiatives.
Implications for Pennsylvania and Beyond
If enacted, Pennsylvania’s Bitcoin reserve bill could serve as a model for other states considering cryptocurrency investments. By integrating Bitcoin into its financial portfolio, Pennsylvania hopes to strengthen its economy and lead the way in adopting blockchain-based solutions for state-level financial management.
