Pennsylvania Moves to Use 10% of $7 Billion Reserve to Invest in Bitcoin if Bill is Passed
The Visionary Move to Protect State Finances from Inflation And Pave the Way for U.S. States to Embrace Digital Assets According to Republican Representative
Pennsylvania lawmakers have proposed the Bitcoin Strategic Reserve Act, a bill designed to significantly alter the state’s treasury management practices by incorporating Bitcoin into its reserves. The legislation, as reported by Fox Business, seeks to diversify state funds and potentially leverage the benefits of cryptocurrency investment.
The bill, presented by Republican Representative, Mike Cabell, proposes allocating up to 10% of Pennsylvania’s $7 billion State Investment Fund, into Bitcoin.
“This is a visionary step toward securing Pennsylvania’s financial future,” Cabell stated. He also emphasized that the move is a way to protect the state from inflation while diversifying its investments beyond traditional assets.
Pennsylvania Pioneer the Use of Digital Assets in The U.S.
The bill is slated to move on to the majority Republican-led Senate in the coming weeks and, if passed, onto Gov. Josh Shapiro’s desk for signing.
If passed, the bill would make Pennsylvania the first U.S. state to hold Bitcoin directly on its balance sheet, setting a historic precedent for other states to follow.
The legislation comes at a time when Bitcoin’s value is soaring, recently reaching an all-time high of $93,000. Analysts predict Bitcoin will reach $100,000 after Trump’s January 29th inauguration.
Building on Recent Crypto-Friendly Legislation
The Bitcoin Strategic Reserve Act is not Pennsylvania’s first deep-dive into cryptocurrency legislation. Last month, the state’s House of Representatives passed the Bitcoin Rights Bill, which ensures residents’ rights to self-custody their digital assets and use Bitcoin as a payment method.
Notably, the Bitcoin Strategic Reserve Act is backed by the pro-crypto group, Satoshi Action Fund (SAF). The group has been very pivotal in promoting Bitcoin legislation in multiple states. SAF founder Dennis Porter expressed optimism about the Reserve Act’s success, citing the momentum gained from previous legislative wins.
Moreover, the bill also aligns with broader national interests. U.S. Senator, Cynthia Lummis has also proposed a plan for the government to purchase an additional 200,000 BTC over five years in the creation of a national Bitcoin reserve.
The Bitcoin Strategic Reserve Act is garnering attention for its forward thinking. As the bill advances through the state legislature, all eyes are on Pennsylvania as its success would change the way states manage their funds and its integration with modern finance.
