Pennsylvania lawmakers have introduced the Strategic Bitcoin Reserve Act, a bill that would authorize the state treasurer to invest in Bitcoin, digital assets, and crypto-based exchange-traded products. The proposal, sponsored by Republican Representatives Mike Cabell and Aaron Kaufer, positions Bitcoin as a potential hedge against inflation and economic instability.
In a memo, Rep. Cabell emphasized that financial institutions and governments worldwide, including the U.S., have embraced Bitcoin as a way to protect portfolios from economic uncertainty. He pointed to major firms like BlackRock, Fidelity, and Franklin Templeton, which now offer Bitcoin investment options, as well as states like Wisconsin that have begun exploring digital asset investments. Cabell argued that allocating a small portion of Pennsylvania’s reserves to Bitcoin could diversify and strengthen the state’s financial portfolio.
Parallels with Federal-Level Proposals
The Pennsylvania bill aligns with the federal BITCOIN Act (Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide), introduced by Sen. Cynthia Lummis of Wyoming. Lummis’s proposal encourages states and federal agencies to include Bitcoin in their investment strategies. A long-time Bitcoin supporter, Lummis believes her bill could gain bipartisan support under the incoming Trump administration, which has shown a favorable stance toward crypto.
In a recent statement, Lummis called for public backing of her proposal, arguing that it could enhance America’s financial resilience and innovation in the digital asset space.
Pennsylvania Joins the Crypto Movement
The Strategic Bitcoin Reserve Act signals Pennsylvania’s entry into the broader trend of government interest in cryptocurrencies. By considering Bitcoin as part of its investment strategy, Pennsylvania follows a growing number of states exploring digital assets as tools to safeguard financial stability and hedge against inflation. This marks another step in integrating crypto into public sector portfolios.
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