KEY POINTS
- Cabell said the proposed bill is a 'visionary step toward securing our state's financial future'
- Pennsylvania's Legislature previously passed a pro-crypto bill that sought to provide clarity on digital assets
- GOP Sen. Cynthia Lummis is pushing for a bill that will recognize $BTC as a national reserve asset
Pennsylvania may soon establish Bitcoin as a strategic reserve asset after Republican State Rep. Mike Cabell introduced the Pennsylvania Bitcoin Strategic Reserve Act – the first of its kind in the country.
Cabell introduced the bill to the Pennsylvania House of Representatives on Thursday. If passed, it will allow Pennsylvania's treasury to allocate up to 10% of its $7 billion State General Fund, Rainy Day Fund and the State Investment Fund in Bitcoin.
$BTC As a Hedge Against Inflation
Cabell said he introduced the bill to protect state funds from the consequences of inflation, noting how using Bitcoin as a hedge can potentially "offer stability in uncertain economic times."
"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," Cabell said.
Cabell introduced the bill to the Pennsylvania House over a week after Donald Trump won the presidency. Hours after the race was called for the former president, Trump ally and GOP Sen. Cynthia Lummis reaffirmed her commitment to getting Bitcoin approved as a national strategic reserve asset.
Lummis previously announced the plan at the 2024 Bitcoin Conference. Some weeks later, Trump said BTC can be used to pay off the United States' multi-trillion-dollar debt.
$BTC Community Lauds Development
The Satoshi Action Fund, a BTC mining advocacy nonprofit, said the move should provide the state with a "robust investment strategy" that will also promote flexibility in terms of state fund investment choices.
PRESS RELEASE: Satoshi Action is proud to position groundbreaking 'Strategic Bitcoin Reserve' legislation in the state of Pennsylvania. pic.twitter.com/OSKNW4VcyK
— Dennis Porter (@Dennis_Porter_) November 14, 2024
"Bitcoin acts as a check and balance against monetary debasement. With a strategic Bitcoin reserve, the state of Pennsylvania can protect its economy and its people from inflation and financial hardship. We are proud to help the state of Pennsylvania be the first in the nation to introduce this groundbreaking legislation," said Dennis Porter, CEO of the Satoshi Action Fund.
Many other crypto users and prominent figures in the space have also hailed the bill's introduction, saying other U.S. states should follow suit.
Pennsylvania needs Bitcoin
— Cory Bates (@corybates1895) November 14, 2024
Ok this is huge, now get on the ball with Florida!
— Mark Satoshi Reece (@markRee92928419) November 14, 2024
Ok this is pretty good.
— Bit Paine ⚡️ (@BitPaine) November 14, 2024
Several X users were unsure of whether the news is as big as some Bitcoiners paint it to be, given how proposed legislation can still "be killed on arrival or shot down."
Still, Pennsylvania's House of Representatives has had a history of passing a cryptocurrency bill. Just last month, the House overwhelmingly passed the Bitcoin Rights bill, which provides clarity on self-custody rights, state transaction taxes, and BTC payments.
