Originally published on: November 14, 2024
A Pennsylvania lawmaker is making waves by introducing a groundbreaking bill that would allow the state treasury to hold up to 10% of its balance sheet in Bitcoin. Representative Mike Cabell, a Republican, believes that investing in Bitcoin could serve as a protective measure against inflation and provide stability in uncertain economic times.
The proposed legislation, known as the Strategic Bitcoin Reserve bill, would permit Pennsylvania’s Treasurer to allocate funds from the State General Fund, Rainy Day Fund, and State Investment Fund into Bitcoin. With the state’s treasury reporting over $9.7 billion in the General Fund and approximately $7 billion in the Rainy Day Fund, this move could have significant implications for Pennsylvania’s financial future.
Cabell drew inspiration from major investment firms like BlackRock and Fidelity, which have turned to Bitcoin as a hedge against economic volatility. The introduction of the bill in the Pennsylvania House on Nov. 13 has sparked discussions about the potential impact of incorporating Bitcoin into the state’s financial strategy.
The Strategic Bitcoin Reserve bill mirrors a framework proposed by the Satoshi Action Fund, a prominent Bitcoin advocacy group. While Representative Aaron Kaufer has co-sponsored the legislation, its fate remains uncertain as it navigates the legislative process.
In a separate development, Pennsylvania recently passed legislation in October to establish regulations around self-custody and crypto payments. The state’s proactive approach to embracing Bitcoin signals a growing trend among Republican lawmakers to explore innovative solutions in the digital asset space.
With the potential for Pennsylvania to lead the way in incorporating Bitcoin into its financial arsenal, all eyes are on this groundbreaking bill. As the digital asset landscape continues to evolve, the Strategic Bitcoin Reserve bill could set a new standard for how states approach cryptocurrency adoption.
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