Pennsylvania Embraces Bitcoin, New Bill Protects Self-Custody and Payments

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Hassan Shittu

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Hassan Shittu

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Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

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October 24, 2024 18:17 EDT

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Pennsylvania is stepping into the future of cryptocurrency by passing a bipartisan bill that would clarify the state’s stance on digital assets, particularly Bitcoin.

The legislation, known as House Bill 2481 or the “Bitcoin Rights Bill,” protects residents’ rights to self-custody their digital assets and outlines guidelines for using Bitcoin as a payment method and taxing Bitcoin transactions.

Pennsylvania Advances Bitcoin Rights Bill Amid Growing Crypto Movement

According to a report by Fox Business, the bill was overwhelmingly approved by the Pennsylvania House, with 176 votes in favor and only 26 against, showcasing strong support from both Democrats and Republicans.

House Bill 2481 ensures residents can manage their Bitcoin without third-party interference and establishes a legal framework for Bitcoin transactions within the state.

The legislation is part of a broader trend among states seeking to define their own regulatory approaches to the burgeoning $2 trillion digital asset market, especially amid ongoing confusion at the federal level regarding which agency should oversee cryptocurrency regulations.

The bill will now proceed to the Republican-led Pennsylvania Senate after the upcoming elections. It will be sent to Governor Josh Shapiro for approval if it passes there.

The Satoshi Action Fund (SAF), a Bitcoin advocacy organization, played a crucial role in crafting the legislation. SAF has previously helped enact similar bills in 20 states, including Oklahoma and Louisiana.

“Our goal is to mainstream Bitcoin at the state level and encourage lawmakers to establish clear rules for crypto,” Dennis Porter, founder of the SAF, said.

Despite the progress at the state level, the crypto regulation on the federal level is complex. There is still uncertainty regarding the classification of various digital assets, and the U.S. Securities and Exchange Commission (SEC) has yet to define which cryptocurrencies are considered securities subject to disclosure regulations.

Debate Over Crypto Regulation Heats Up: Will Bipartisan Support Overcome Environmental Concerns?

As Pennsylvania grapples with these regulatory challenges, the number of crypto owners in the state is on the rise, with approximately 1.5 million residents—about 12% of the state’s population—holding some form of digital asset.

This growing demographic could greatly influence the political landscape in upcoming elections, particularly in key races like the Senate battle between incumbent Democratic Senator Bob Casey and his Republican challenger, Dave McCormick, a vocal bitcoin advocate.

The upcoming presidential election has further elevated the importance of cryptocurrency in Pennsylvania, a critical battleground state. Both former President Donald Trump and Vice President Kamala Harris are neck and neck in the polls, making the views of crypto owners increasingly important.

The outcome of the upcoming elections may further shape the future of cryptocurrency regulations, particularly as more voters engage with digital assets and seek candidates who align with their interests.

“A bill geared towards the right to financial freedom should be bipartisan,” State Rep. Mike Cabell, the bill’s sponsor, expressed optimism about its chances in the Senate.

However, he acknowledged that some opposition stemmed from concerns about Bitcoin’s environmental impact and a general lack of understanding of blockchain technology.

“The 26 ‘nos’ came from members with less of an understanding about blockchain technology,” he noted.