- The Pennsylvania legislature, led by Rep. Mike Cabell, has introduced a bill that would allow the state to invest in Bitcoin by allowing up to 10% to be allocated to Bitcoin from three state funds.
- The proposed legislation builds on Pennsylvania’s recent legislative success with the Bitcoin Rights Bill, which has already passed the House of Representatives.
As President-elect Donald Trump takes office for another term in January, his initiative to establish a national Bitcoin reserve is gaining traction. In light of this proposal, Pennsylvania lawmakers have introduced the Pennsylvania Bitcoin Strategic Reserve Act, which would allow the state treasury to include Bitcoin in its assets.
How FOX News reported on November 14, this proposed law aims to invest up to 10% of Pennsylvania’s approximately $7 billion budget in Bitcoin (BTC). The goal is to provide protection against inflation and diversify the state’s investment portfolio beyond conventional assets such as cash and bonds.
🚨SCOOP: Today the Pennsylvania House of Representatives introduced legislation that would enable the state to hold Bitcoin on its balance sheet as a reserve asset in a broader movement to recognize $BTC as a store of value.
Full write-up on @FoxBusiness coming shortly.
— Eleanor Terrett (@EleanorTerrett) November 14, 2024
Representative Mike Cabell, who introduced the bill, emphasized that the Pennsylvania Bitcoin Strategic Reserve Act represents a forward-looking approach to securing our state’s financial future. He emphasized that by including Bitcoin in Pennsylvania’s reserves, the law not only protects it from the ongoing effects of inflation, but also positions it as a leader in financial innovation and resilience.
In addition to the Bitcoin Reserves Act, the Pennsylvania House of Representatives passed a Bitcoin Rights Act in October 2024. The bill aims to protect residents’ rights to self-custody their digital assets and use Bitcoin for transactions. The bill received broad bipartisan support thanks to the advocacy group Satoshi Action Fund. It passed by a vote of 176-26, with 76 Democrats and all 100 Republicans supporting the measure.
Growing support for Bitcoin in the United States
The proposed legislation comes at a time when enthusiasm for Bitcoin is growing nationwide, particularly amid discussions about establishing a national Bitcoin reserve if Donald Trump takes office.
Representative Cabell pointed to moves by major investment firms such as BlackRock, a global asset manager, and Fidelity, which highlighted the appeal of Bitcoin as a means of improving the stability of investment portfolios
As reported by CNF, Republican Senator Cynthia Lummis of Wyoming has unveiled a plan to create a US Bitcoin reserve by selling part of the Federal Reserve’s gold holdings. Their proposal aims to convert gold into a million Bitcoins, representing about 5% of the total supply and an estimated cost of $90 billion.
This strategy aims to leverage existing financial assets without increasing the government deficit and allows the creation of a Bitcoin reserve without burdening taxpayers.
At the time of writing, BTC is trading at $87,983 and is up 0.15% in the last hour. However, the token’s daily volume has fallen by 26.48% and now stands at $87 billion.
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