Pennsylvania House Introduces Legislation for a Bitcoin Reserve

Amid discussions of President-elect Donald Trump’s plan for a national Bitcoin reserve, some states are exploring their own digital asset initiatives.

Pennsylvania lawmakers recently proposed the Pennsylvania Bitcoin Strategic Reserve Act, allowing the state treasury to invest up to 10% of its $7 billion in state funds into Bitcoin.

MASSIVE BREAKING: I CAN CONFIRM THE STATE OF PENNSYLVANIA HAS INTRODUCED LEGISLATION TO CREATE A 'STRATEGIC BITCOIN RESERVE'.
— Dennis Porter (@Dennis_Porter_) November 14, 2024

The aim is to diversify investments and mitigate inflation beyond traditional assets like bonds and cash.

"The Pennsylvania Bitcoin Strategic Reserve Act is a visionary step toward securing our state’s financial future," said Republican state Rep. Mike Cabell, the bill’s sponsor.

"By integrating Bitcoin into our reserves, we’re not only protecting Pennsylvania from inflation’s relentless impact but also positioning our state as a leader in financial resilience and innovation."

If enacted, Pennsylvania would be the first state to directly invest in Bitcoin, while other states, such as Michigan and Wisconsin, have opted to gain exposure through Bitcoin exchange-traded funds (ETFs) for their pension funds.

This is Pennsylvania’s second significant Bitcoin-related legislative effort this year. In October, the state’s House passed the Bitcoin Rights Bill, ensuring residents' rights to self-custody digital assets and enabling Bitcoin use for payments. The bill is currently before the Senate.

The Satoshi Action Fund, which assisted in drafting these bills, aims to promote Bitcoin adoption at the state level. Dennis Porter, the group's founder, highlighted the bipartisan support for the rights bill and anticipates a similar outcome for the reserve proposal.

"The Bitcoin Rights bill sailed through the Democrat-led House with a majority of 176 votes to 26," Porter said.

"With public support and interest in Bitcoin at an all-time high, we expect both bills to be passed and signed into law next year."

Porter added that Pennsylvania’s strategic reserve legislation could serve as a model for other states considering similar strategies. The Satoshi Action Fund is already in talks with officials in multiple states on this matter.