A Pennsylvania lawmaker has introduced a bill to allow the state treasury to allocate up to 10% of its funds into Bitcoin, aiming to use the digital asset as a hedge against inflation and economic uncertainty.
State Representative Mike Cabell, a Republican, proposed the legislation as a way to protect Pennsylvania’s financial reserves from economic volatility. Cabell highlighted Bitcoin’s potential to offer stability, citing its adoption by major investment firms like BlackRock and Fidelity.
If enacted, the bill would permit the Pennsylvania Treasurer to invest up to 10% of the General Fund, the Rainy Day Fund, and the State Investment Fund in Bitcoin. As of November, the state reported over $9.7 billion in its General Fund and approximately $7 billion in the Rainy Day Fund, suggesting a potential multibillion-dollar Bitcoin investment.
The proposed legislation, named the Strategic Bitcoin Reserve bill, appears to draw inspiration from the framework advocated by the Satoshi Action Fund, a pro-Bitcoin advocacy group. The bill has gained support from co-sponsor Representative Aaron Kaufer, although its likelihood of passage remains uncertain.
This initiative builds on Pennsylvania’s recent legislative efforts to embrace cryptocurrency. In October, the state passed a bill to establish a regulatory framework for protecting self-custody and enabling crypto payments.
The move reflects a broader trend of Republican lawmakers supporting Bitcoin adoption as part of their economic strategy. Following the 2024 U.S. elections, Senator Cynthia Lummis announced plans to push for a national Bitcoin reserve, reinforcing the digital asset’s potential as a strategic financial tool.
While President-elect Donald Trump’s administration is not expected to establish a national Bitcoin reserve, other nations, including El Salvador and Bhutan, have already incorporated Bitcoin into their government reserves.
Pennsylvania’s proposal marks a significant step in aligning state financial strategies with the growing acceptance of Bitcoin as a store of value and hedge against economic uncertainty.
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