Satoshi

Apple

Hedge

Reserve

BlackRock

The Pennsylvania House of Representatives introduced the "Pennsylvania Bitcoin Strategic Reserve Act," a bill aimed at diversifying the state treasury's investments by allowing up to 10% of its $7 billion fund to be allocated to Bitcoin, per&nbsp;<a style="text-decoration:none" href="https://www.foxbusiness.com/money/pennsylvania-house-introduces-bill-implement-strategic-bitcoin-reserve">Fox Business</a>.
The bill's sponsor, Republican state Representative Mike Cabell, describes it as a forward-thinking initiative to guard Pennsylvania against inflation while aligning with broader national trends toward adopting digital assets.
<blockquote>
 “The Pennsylvania Bitcoin Strategic Reserve Act is a visionary step toward securing our state’s financial future,” Cabell said.
</blockquote>
If passed, Pennsylvania would become the first U.S. state to directly acquire Bitcoin as part of its treasury, joining a growing number of financial institutions and government entities globally that recognize Bitcoin’s potential as a store of value and hedge against inflation.
<h2 dir="ltr" id="span-span-why-bitcoin-hedge-against-inflation-and-diversification-span-span">Why Bitcoin? Hedge Against Inflation and Diversification</h2>
The proposal emphasizes Bitcoin's role as a “financial hedge.” Rep. Cabell argues that Bitcoin offers a layer of protection from economic instability, especially as inflation continues to impact traditional financial assets.&nbsp;
&nbsp;
By diversifying the state’s holdings beyond bonds and cash reserves, Pennsylvania could potentially benefit from Bitcoin's growth while mitigating inflation’s long-term effects on state funds.
&nbsp;
In a memo filed this week, Cabell cited global trends, noting that major financial institutions like BlackRock and Fidelity now offer Bitcoin options. Other U.S. states, such as Wisconsin and Michigan, have explored Bitcoin through ETFs in their pension funds.&nbsp;
&nbsp;
Pennsylvania’s plan to directly hold Bitcoin, however, represents a bolder step that proponents believe could establish the state as a leader in financial innovation.
<h2 dir="ltr" id="span-span-broader-political-support-span-span">Broader Political Support&nbsp;</h2>
Pro-crypto advocates like Senator Cynthia Lummis from Wyoming have recently introduced similar federal bills encouraging government entities to hold Bitcoin.&nbsp;
&nbsp;
Lummis, a long-time supporter of cryptocurrency, is optimistic that her bill could pass within the first 100 days of President-elect Donald Trump’s administration. She believes that Trump’s pro-crypto stance could accelerate the legislative pathway for Bitcoin adoption across the country.
&nbsp;
The Pennsylvania legislation also follows recent state-level momentum. Last month, Pennsylvania <a href="https://www.forbes.com/sites/digital-assets/2024/10/25/pennsylvania-house-passes-crypto-protection-bill-in-bipartisan-vote/">passed</a> the Bitcoin Rights Bill, aimed at safeguarding citizens’ rights to self-custody digital assets. The bill passed with bipartisan support, showing how Bitcoin has moved from a niche asset to an issue with mainstream legislative support.
&nbsp;
Dennis Porter, founder of the Satoshi Action Fund, helped Pennsylvania craft the Bitcoin Rights Bill and is also backing the new reserve act.
<h2 dir="ltr" id="span-span-impact-on-bitcoin-s-market-span-span">Impact on Bitcoin’s Market&nbsp;</h2>
The introduction of Pennsylvania’s bill aligns with a surge in Bitcoin’s price following Trump’s election victory.&nbsp;
&nbsp;
Following Trump's election win, optimism about his crypto-friendly policies has driven a recent surge in Bitcoin's price, pushing it to over $93,000 per token—a record high. With a market cap now exceeding&nbsp;<a style="text-decoration:none" href="https://coinmarketcap.com/currencies/bitcoin/">$1.72 trillion</a>, Bitcoin has become the world’s seventh-largest asset, trailing only gold and major U.S. tech giants like Apple and Microsoft.

Pennsylvania House of Representatives Introduces Bill to Hold Bitcoin as Reserve Asset

Table of Contents

BSCN

Other articles published on Nov 21, 2024

DegenLayer Introduces The First Memecoin Focused Blockchain (21 Nov)

Retail investors missed the 2024 Bitcoin (BTC) bull run

Cardano (ADA) Price Soars as Whale Activity Surges

3100+ Holders Agree: Qubetics Is the Best Crypto to Buy Under $1 as Binance Alerts on Scams and T...

Floki Joins Forces with Animoca Brands' Forj to Launch $MONKY Memecoin

Phillip Banks Enforces Copyright on Viral Chill Guy Meme

Join our free newsletter for daily crypto updates!