Key Takeaways
- Pennsylvania bill proposes 10% investment of treasury funds in Bitcoin.
- The reserve would involve billions from Pennsylvania's main state funds.
- Satoshi Action Fund provided support for Pennsylvania's Bitcoin-focused bills.
A new bill introduced by Pennsylvania lawmakers could allow the state’s Treasury to invest up to 10% of its assets in Bitcoin.
Proposed by Representative Mike Cabell on Nov. 13, this legislation aims to protect Pennsylvania’s finances from inflation by diversifying its reserves.
Cabell argued that Bitcoin could “offer stability in uncertain economic times,” drawing parallels to similar moves by large investment firms like BlackRock and Fidelity.
Background
If passed, the bill would enable the Pennsylvania Treasurer to allocate up to 10% of the General Fund, Rainy Day Fund, and State Investment Fund into Bitcoin, translating to billions in potential investments.
Currently, Pennsylvania’s General Fund holds over $9.7 billion, while the Rainy Day Fund holds around $7 billion.
Satoshi Action Fund
Cabell’s proposal appears to mirror initiatives by Bitcoin advocacy groups, specifically the Satoshi Action Fund, which also supported Pennsylvania’s recent “Bitcoin rights” legislation (HB 2481).
Co-sponsored by Representative Aaron Kaufer, the current bill may encounter debate in the Pennsylvania House as it seeks sufficient support for passage.
Notably, national discussions on state-level Bitcoin reserves have gained traction, with politicians like Senator Cynthia Lummis advocating for Bitcoin-backed reserves.
Globally, countries such as El Salvador have already established Bitcoin reserves in their national balance sheets.
