Pennsylvania House Introduces Bill to Hold Bitcoin as Reserve Asset on State Balance Sheet

Bitcoin Cynthia Lummis

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Julia Smith

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Julia is an experienced editor with a passion for covering a wide variety of beats. She loves all things politics and regularly covers regulatory updates on emerging technology here for Crypto News.

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November 14, 2024

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Pennsylvania State Representative Mike Cabell has introduced a bill in the state’s House of Representatives that would allow up to 10 percent of the state’s funds to be comprised of Bitcoin.

Pennsylvania House Of Representatives Launches Bitcoin Bill

According to a Pennsylvania House memo made by Cabell on November 12, the legislation—aptly titled the Strategic Bitcoin Reserve bill—would grant the state treasurer permission to invest a part of the state General Fund, the State Investment Fund, and the Rainy Day Fund in Bitcoin.

“In recent years, many financial institutions and sovereign governments, including the United States, have invested in Bitcoin to shield their portfolios from economic volatility,” Cabell said in a November 12 memo, arguing the state could use the cryptocurrency as a hedge against inflation.

“The world’s largest investment firms—such as BlackRock, Fidelity, and Franklin Templeton—now offer Bitcoin options, and states like Wisconsin have also made strategic investments in digital assets,” he added, alluding to the approval of several Bitcoin ETFs.

News of Pennsylvania’s latest proposed crypto legislation comes just one month after the state’s House of Representatives passed House Bill 2481, also known as the “Bitcoin rights bill.”

If enacted into law, House Bill 2481 would clearly regulate digital assets for crypto users, particularly Bitcoin.

Should House Bill 2481 pass the state Senate, it would only need Governor Josh Shapiro’s signature to be approved.

Mike Cabell and More Push For Government Bitcoin Reserves

Cabell’s push for a strategic Bitcoin reserve echoes calls made by Wyoming Senator Cynthia Lummis for a federal reserve of the token to “bolster America’s balance sheet and ensure the transparent management of Bitcoin holdings of the federal government.”

“Bitcoin is transforming not only our country but the world, and becoming the first developed nation to use Bitcoin as a savings technology secures our position as a global leader in financial innovation,” Lummis said in a July 2024 statement.

The Satoshi Nakamoto-created cryptocurrency has skyrocketed since the election of pro-crypto President-elect Donald Trump over current U.S. Vice President Kamala Harris, soaring over $93,000 this week alone.

Trump, who recently launched his family’s crypto platform, World Liberty Financial, has pledged to enact crypto-friendly regulations when he returns to the Oval Office.

“We will have regulations, but from now on, the rules will be written by the people who love your industry, not hate your industry,” Trump told attendees of the Bitcoin 2024 Conference.