Pennsylvania Lawmaker Proposes Bill to Establish Strategic Bitcoin Reserve

• Pennsylvania proposes bill allowing investment of up to 10% of state funds in Bitcoin to hedge inflation.
• Lawmakers aim to protect state assets by using Bitcoin, inspired by advocacy groups.
• National interest in Bitcoin reserves grows as state efforts align with Republican strategies.

Pennsylvania is taking a bold step toward integrating Bitcoin into its financial strategy. State Representative Mike Cabell introduced legislation on Nov. 13 to create a “Strategic Bitcoin Reserve” by allowing the Pennsylvania Treasury to allocate up to 10% of its investment funds into Bitcoin. 

The proposed bill, known as HB 2664, seeks to grant the state’s Treasurer the authority to invest up to 10% of its General Fund, rainy day fund, and State Investment Fund in Bitcoin.

Pennsylvania’s Treasury manages substantial resources, with more than $9.7 billion in the General Fund and approximately $7 billion in the rainy day fund as of November. 

In his announcement, Rep. Cabell emphasized Bitcoin’s potential as a hedge against economic volatility. He noted that adopting this strategy could protect Pennsylvania’s financial interests during inflationary periods. 

Cabell’s proposal mirrors moves by large investment firms like BlackRock and Fidelity, which have already diversified their portfolios with Bitcoin investments to safeguard against market fluctuations.

The concept of a strategic Bitcoin reserve in Pennsylvania draws from ideas promoted by the Satoshi Action Fund, a group advocating for Bitcoin adoption. Representative Aaron Kaufer co-sponsored the bill, supporting its potential to strengthen the state’s economic resilience.

This legislative effort is part of a broader trend in Pennsylvania. In October, the state’s House passed HB 2481, which focuses on establishing regulations for self-custody and facilitating crypto payments. The “Bitcoin rights” bill, influenced by the Satoshi Action Fund, highlights Pennsylvania’s progressive stance on digital assets.

The move by Pennsylvania lawmakers aligns with a growing interest among Republican officials nationwide in exploring Bitcoin’s potential as a financial safeguard.

Following recent election outcomes, Senator Cynthia Lummis, a vocal proponent of Bitcoin, indicated plans to push for federal legislation to establish a national Bitcoin reserve once Republicans take control of the Senate in 2025.

Despite these state and federal initiatives, skepticism remains at the national level. Galaxy Digital founder Mike Novogratz expressed doubts about whether President-elect Donald Trump would prioritize the creation of a Bitcoin reserve during his term. 

Meanwhile, countries like El Salvador and Bhutan have already integrated Bitcoin into their national reserves, setting a precedent that U.S. states and the federal government may consider following.