Pennsylvania introduces bill to use $7 billion state fund for Bitcoin Strategic Reserve purchases News โธ US โธ Bitcoin โธ Regulation
Pennsylvania introduces bill to use $7 billion state fund for Bitcoin Strategic Reserve purchases
Satoshi Action Fund announced up to 10 more states are likely to follow suit this year.
2 min read
Updated: Nov. 14, 2024 at 4:00 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Pennsylvania’s legislature has introduced landmark legislation for establishing a Bitcoin reserve, positioning the state at the forefront of digital asset policy in the United States. The bill, led by Representative Mike Cabell, enables the state to allocate a portion of its reserves exclusively to Bitcoin as a strategic hedge against inflation and an asset to secure the Commonwealth’s economic future.
The news comes after Pennsylvania passed the Bitcoin Rights bill through its House and is currently being considered by the PA Senate.
According to Satoshi Action Fund co-founder Dennis Porter, Pennsylvania’s adoption of Bitcoin reserve legislation reflects a proactive stance in response to financial instability and inflationary pressures. Porter said during a recent Twitter Spaces event,
“This initiative places Pennsylvania at the forefront of states preparing for a future centered on digital assets.โ
Porter also noted that similar legislation is being considered in other states, highlighting Pennsylvania as a potential model for broader legislative efforts across the US.
Representative Cabell, a key figure in promoting the reserve initiative, acknowledged the collaborative support from lawmakers and advocacy groups. He stated that while the reserve proposal marks a significant step, further efforts are necessary to ensure a smooth implementation. Cabell said,
โThis work cannot be done by one lawmaker or even a group of lawmakers; it requires advocates who understand the policy intricacies and can help foster these relationships within state legislatures and Congress.โ
As reported by Satoshi Action Fund, the bill has already gained traction within the Pennsylvania House, and efforts are underway to secure Senate approval and the Governor’s endorsement.
Cabell pointed to the state’s $7 billion rainy day fund as an example of assets that may be allocated to Bitcoin, particularly in response to inflationary erosion of purchasing power.
Cabell’s proposal calls for an initial Bitcoin allocation of up to 10%, although he noted that the practical starting point might be smaller, suggesting a range from 1% to 5%. Citing investment strategies from firms like Fidelity, Cabell remarked that a modest Bitcoin allocation could serve as a prudent diversification measure within the state’s portfolio.
Porter further emphasized the significance of this initiative as a foundational move for state-level adoption of digital assets.
โWeโre seeing interest from at least ten other states, with some lawmakers already in the drafting process to introduce similar legislation.”
He suggested that Pennsylvania’s lead could accelerate nationwide adoption as other states observe the financial outcomes of a Bitcoin reserve strategy.
Governor Josh Shapiro’s support will be crucial for the bill’s enactment. With bipartisan backing, the measure aligns with Shapiro’s forward-looking approach to economic competitiveness, indicating a readiness for Pennsylvania to adopt innovative asset strategies. Per Satoshi Action Fund, Shapiro’s administration is reportedly open to initiatives fostering financial resilience, especially amid ongoing economic uncertainties.
Should the bill pass, Pennsylvania would be the first state to adopt a Bitcoin reserve and set a precedent for digital asset management in state government. The initiative highlights a growing interest among state lawmakers to explore Bitcoin’s role as a fiscal stabilizer, with Pennsylvania leading what may become a broader shift in state-level fiscal policy across the United States.
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Author 
Liam 'Akiba' Wright
Also known as "Akiba," Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Dennis Porter is the co-founder and chairman of Satoshi Action Fund,ย a 501(c)(4) non-profit educational organization dedicated to informing policymakers and regulators about Bitcoin miningโs benefits and how it can be used as a tool to support other public policy goals.
