A Pennsylvania lawmaker introduced a bill allowing the state’s treasury to allocate up to 10% of its funds to Bitcoin. Representative Mike Cabell, a Republican, presented the legislation as a safeguard against inflation. He emphasized Bitcoin’s potential to provide stability in uncertain economic times.
In a memo, Cabell outlined the proposal enabling the state to invest portions of the General Fund, Rainy Day Fund, and State Investment Fund in Bitcoin. These funds collectively hold more than $16 billion, suggesting a significant potential investment.
Cabell highlighted the growing trend of institutional investors like BlackRock and Fidelity embracing Bitcoin as a hedge against economic volatility. Co-sponsored by Representative Aaron Kaufer, the bill, titled the Strategic Bitcoin Reserve (HB 2664), mirrors a framework created by Bitcoin advocacy group Satoshi Action Fund.
While it remains unclear if the bill has enough support to pass, its introduction reflects Pennsylvania’s increasing interest in cryptocurrency. In October, the state’s House approved legislation to protect the self-custody of digital assets and enable crypto payments.
National Bitcoin Reserve
The proposal aligns with broader Republican efforts to incorporate Bitcoin into financial strategies. Republican Senator Cynthia Lummis has advocated for a national Bitcoin reserve. Globally, countries like El Salvador and Bhutan have already integrated Bitcoin into their financial systems.
This bill positions Pennsylvania as a potential leader in state-level Bitcoin adoption. According to the Satoshi Action Fund, 10 more states are likely to follow suit this year.