Pennsylvania Lawmakers Introduce Bill to Allow Bitcoin Investments
Pennsylvania lawmakers have introduced the Strategic Bitcoin (BTC) Reserve Act, enabling the state treasurer to invest in bitcoin, digital assets, and crypto-based exchange-traded products. Sponsored by Republican Representatives Mike Cabell and Aaron Kaufer, the proposal aims to use bitcoin as a hedge against inflation, potentially protecting the state from economic uncertainty.
In a memo, Cabell noted that various financial institutions and governments, including the U.S., have invested in Bitcoin to safeguard their portfolios from economic fluctuations. Major firms like BlackRock, Fidelity, and Franklin Templeton now offer Bitcoin options, while states like Wisconsin have begun strategic digital asset investments. Cabell argues that holding a small portion of reserves in Bitcoin could enhance Pennsylvania's portfolio diversification and resilience.
The bill aligns with a federal proposal by Sen. Cynthia Lummis of Wyoming, known as the BITCOIN Act, which stands for "Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2024." This act encourages U.S. states and federal agencies to invest in bitcoin, promoting broader public sector involvement in the digital asset market.
Sen. Lummis, a long-time supporter and holder of bitcoin, believes her proposal could garner bipartisan support and pass within the first 100 days of the incoming Trump administration, citing President-elect Trump’s pro-crypto stance. In a recent statement, Lummis called for public support to help pass the Bitcoin Act, asserting it would strengthen America’s financial stability.
The Strategic Bitcoin Reserve Act signifies Pennsylvania's entry into the trend of government interest in digital assets, as states increasingly view crypto investments as a strategy for safeguarding financial assets.