Pennsylvania introduces bill for bitcoin reserve

The new bill, called the Pennsylvania Bitcoin Strategic Reserve Act, introduced in the Pennsylvania House of Representatives on Thursday, is the first of its kind and would allow the state's treasury to allocate up to 10% of its roughly $7 billion state funds into bitcoin

Pennsylvania is introducing a bill that would allow the state treasury to allocate up to 10% of its roughly $7 billion state funds into bitcoin as a way to help combat inflation and diversify its investments beyond traditional assets like bonds and cash reserves.

The bill, called the Pennsylvania Bitcoin Strategic Reserve Act, was introduced in the Pennsylvania House of Representatives on Thursday. It would allow the state to purchase, hold and sell bitcoin as part of its strategic reserve.

The move comes as several states are considering how to integrate cryptocurrencies into their financial systems. Wyoming, for example, has passed a series of laws to make the state more crypto-friendly, including allowing banks to charter as crypto depositories.

“The Pennsylvania Bitcoin Strategic Reserve Act is a visionary step toward securing our state’s financial future,” Republican Pennsylvania state Rep. Mike Cabell, the bill’s sponsor, told FOX Business. “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.”

The strategic reserve act is the second piece of crypto-related legislation to go in front of the state legislature this year. Last month, the state’s House passed a bill, called the Bitcoin Rights bill, to protect residents’ rights to self-custody digital assets and ensure their ability to use bitcoin as a payment method.

The bill now heads to the state Senate for consideration. If passed by both chambers of the legislature, it would then need to be signed by Democratic Pennsylvania Gov. Josh Shapiro to become law.