Lawmakers in Pennsylvania have introduced a bill that could let the state Treasury spend up to 10% of its cash reserves in Bitcoin. This is a bold step toward modernizing the state’s finances. The Pennsylvania Bitcoin Strategic Reserve Act is the name of the proposed bill. Its goal is to create a state-backed Bitcoin reserve. This will protect against inflation and make Pennsylvania a leader in the acceptance of digital assets.
Republican Representative Mike Cabell proposed a plan that would allow Pennsylvania’s Treasury to invest some of its General Fund, Rainy Day Fund, and Investment Fund in Bitcoin. This could be worth billions of dollars. Representative Cabell said that investing in Bitcoin could make the state more stable during times of economic uncertainty, similar to how investment firms like BlackRock and Fidelity have used Bitcoin as a hedge against financial instability.
The act is in line with recent efforts across the U.S. to include digital assets in state portfolios, and it has backing from both parties in Pennsylvania. Pennsylvania’s House just passed the Bitcoin Rights Bill, which is another piece of cryptocurrency legislation. Its goal is to protect people’s rights to self-custody and digital trade.
Legislators across the country presented the Pennsylvania Bitcoin Strategic Reserve Act simultaneously. As lawmakers who support Bitcoin, like Senator Cynthia Lummis, push for a government Bitcoin reserve, there is more and more support for using digital assets in state and national economic plans.
The Satoshi Action Fund, a group that works to standardize Bitcoin rules across all 50 states, also supports the proposed reserve in Pennsylvania. The fund worked directly with Pennsylvania politicians to write this bill, making the state a possible example for other areas thinking about taking similar steps.
