Pennsylvania lawmakers have introduced legislation in the state’s House of Representatives to permit its treasury to hold up to 10% in Bitcoin on its balance sheet.
In a Nov. 12 memo, Representative Mike Cabell, a Republican, said he had proposed the bill as a tool to protect against inflation, claiming using Bitcoin (BTC) as a hedge could “offer stability in uncertain economic times.”
The legislation, if passed, would allow Pennsylvania’s Treasurer to invest up to 10% of the State General Fund, the Rainy Day Fund and the State Investment Fund in Bitcoin. As of November, the state’s Treasury reported it had more than $9.7 billion in its General Fund and roughly $7 billion in its Rainy Day Fund.
Cabell cited investment firms like BlackRock and Fidelity turning to BTC “to shield their portfolios from economic volatility.” The lawmaker introduced the bill in the Pennsylvania House on Nov. 13.
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The Strategic Bitcoin Reserve bill introduced by the Pennsylvania representative appeared to be modeled after a framework proposed by the Satoshi Action Fund, a Bitcoin advocacy group. Representative Aaron Kaufer co-sponsored the legislation, but it was unclear whether it had enough votes to pass.
In addition to the Strategic Bitcoin Reserve bill, introduced as HB 2664, the Pennsylvania House passed legislation in October to establish a regulatory framework for protecting self-custody and crypto payments. Satoshi Action Fund authored the “Bitcoin rights” bill, HB 2481.
State and national pushes to use Bitcoin to fight inflation?
The state-level initiative built upon promises made by Republican lawmakers in the US government. After the results of the US election were announced, Republican Senator Cynthia Lummis said she planned to have lawmakers pass a bill to “build a strategic Bitcoin reserve.” Republicans will have majority control of the Senate starting in 2025.
Galaxy Digital founder Mike Novogratz speculated that President-elect Donald Trump would be unlikely to establish a national BTC reserve while in office. Other countries like El Salvador and Bhutan currently have Bitcoin on their government’s balance sheets.
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