Pennsylvania Passes Landmark ‘Bitcoin Rights Bill,’ Setting Stage for 2024 Election

On Wednesday, the state’s House of Representatives passed House Bill 2481, known as the “Bitcoin Rights Bill,” which protects residents’ rights to self-custody digital assets, enables the use of Bitcoin as a legal form of payment, and outlines taxation rules for Bitcoin transactions.

The state of Pennsylvania is poised to become a crypto hub, with a bill that legalizes Bitcoin payments and self-custody set to reach the Senate. If passed, Pennsylvania will join a select group of states that have taken the initiative to regulate digital assets in the absence of clear federal guidelines.

The bill, known as House Bill 2481, passed the House on Wednesday with overwhelming bipartisan support, securing 176 votes in favor and just 26 against. The legislation, officially titled the “Bitcoin Rights Bill,” aims to protect residents’ rights to self-custody digital assets, legalize the use of Bitcoin as a form of payment, and establish taxation rules for Bitcoin transactions.

The bill's passage comes amid a heated regulatory tug-of-war at the federal level, with agencies like the SEC and CFTC vying to regulate the $2 trillion digital asset market. In the absence of clear federal guidelines, states like Pennsylvania are stepping in to fill the gap.

The bill was crafted with the assistance of the Satoshi Action Fund, a crypto advocacy group that has played a pivotal role in advancing crypto-friendly legislation at the state level. SAF has already helped pass similar legislation in 20 states, with four bills becoming law in Oklahoma, Louisiana, Montana, and Arkansas.

The group aims to provide state lawmakers with the tools to foster innovation while protecting consumers, a goal that the federal government has yet to achieve. Republican state Rep. Mike Cabell, the bill's sponsor and a longtime Bitcoin investor, praised the bipartisan support for the legislation, highlighting its aim to further innovation and prioritize security for Pennsylvanians.

The bill will now proceed to the Pennsylvania Senate, where it is expected to pass before reaching Governor Josh Shapiro for final approval. If signed into law, Pennsylvania will become one of the most progressive states in terms of digital asset regulation.

The state's role as a swing state in the 2024 presidential election has not escaped the attention of the crypto industry. With 1.5 million residents—or about 12% of the state's population—owning digital assets, the bill could mobilize a significant voter base.

The Senate race between Democratic incumbent Bob Casey and Republican challenger Dave McCormick, a Bitcoin advocate, is already heating up, and the state's crypto regulation is set to play a pivotal role in the campaign. Dennis Porter, founder of the Satoshi Action Fund, highlighted Pennsylvania's importance in the upcoming election, calling it on a scale of 1 to 10, “the most important battleground state in the presidential race.”

With the bill moving toward passage in the Senate, Porter believes that the “Bitcoin vote” is quickly becoming a new political force. As the regulatory debate continues to unfold at the federal level, Pennsylvania's Bitcoin Rights Bill could serve as a model for other states seeking to establish clear rules for digital assets and empower their residents with financial freedom.