Pennsylvania Proposes Bitcoin Reserve Legislation, Aims to Integrate Cryptocurrency into State Finances

Pennsylvania is making strides in the world of cryptocurrency with new pro-Bitcoin legislation. This initiative has gained support from both sides of the political aisle. The goal? To protect digital asset rights and integrate Bitcoin into state finances.

Recently, the Satoshi Action Fund has backed these efforts, discussing similar legislation with ten other states that are also interested in investing in Bitcoin.

In the wake of President-elect Donald Trump's proposal for a national Bitcoin reserve, Pennsylvania is considering its own state-held cryptocurrency reserve. This aligns with Trump's vision to make the U.S. the "crypto capital of the planet." It has sparked legislative efforts to recognize Bitcoin as a secure state asset, according to FOX Business.

Lawmakers in Pennsylvania have introduced the Pennsylvania Bitcoin Strategic Reserve Act. This bill would let the state treasury invest up to 10% of its $7 billion reserves in Bitcoin. The aim is to hedge against inflation and diversify from traditional assets like bonds and cash. If passed, this would be a significant step toward acknowledging digital assets in state portfolios.

Republican state Rep. Mike Cabell, who sponsors the bill, said, "The Pennsylvania Bitcoin Strategic Reserve Act is a forward-thinking move to protect our financial future. By integrating Bitcoin, we're safeguarding Pennsylvania against inflation while positioning ourselves as pioneers in financial resilience and innovation."

The push for state-held Bitcoin reserves comes as Bitcoin's value has recently surged. It jumped by 20% in the week following Trump's election victory. Bitcoin hit an all-time high of over $93,000 per token, making it the seventh-largest global asset, just behind gold and major tech companies like Apple, Amazon, and Google.

This state legislation reflects a growing trend for pro-Bitcoin policies at the federal level. U.S. Senator Cynthia Lummis from Wyoming plans to introduce a national Bitcoin reserve bill within the first 100 days of Trump's presidency.

Pennsylvania is also advancing the Bitcoin Rights bill, which aims to protect residents' rights to self-custody and use Bitcoin for payments. This bill has received bipartisan support, passing the Democrat-led House with a vote of 176-26. This sets a positive precedent for the Pennsylvania Bitcoin Strategic Reserve Act.

Dennis Porter, founder of the Satoshi Action Fund, sees Pennsylvania's efforts as a model for other states. He mentioned that they are already in talks with ten other states about similar legislation. "With public interest in Bitcoin at an all-time high, we expect both bills to pass and ideally be signed into law next year," he said.

If successful, Pennsylvania would become the first state to directly integrate Bitcoin into its balance sheet. This could set a trend for other states to follow suit. "This legislation sends a powerful message," Cabell emphasized. "Pennsylvania is ready to adopt modern financial solutions for future prosperity."

The evolution of Pennsylvania's pro-Bitcoin stance highlights a significant trend in cryptocurrency adoption at the state level. It may pave the way for digital assets to play an increasingly prominent role in U.S. economic policy.

As discussions around these policies heat up, the cryptocurrency community, government officials, and investors will gather at Benzinga’s Future of Digital Assets event on November 19. They will explore how these legislative shifts could shape the future of digital finance in America.