Pennsylvania May Become First US State to Hold Bitcoin
Pennsylvania legislators have introduced a bill that would make it the first US state to hold Bitcoin in its reserves, marking a significant shift in how state governments approach digital asset management.
The legislation, which follows the state’s Bitcoin Rights bill already passed by the House, would permit investment of up to 10% of state funds in Bitcoin, though implementation would likely start at 1% to 5%, according to State Representative Mike Cabell, the bill’s primary sponsor.
Cabell identified the state’s $7 billion rainy day fund as a potential source for the Bitcoin allocation, citing inflationary pressures on traditional reserves.
“This 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,” Cabell said.
The initiative has drawn attention from digital asset advocacy groups, including the Satoshi Action Fund, whose co-founder Dennis Porter sees broader implications for state-level finance.
“This initiative places Pennsylvania at the forefront of states preparing for a future centered on digital assets,” Porter said, noting that at least ten other states are considering similar legislation.
The proposal draws on investment strategies from established firms like Fidelity, positioning Bitcoin as a portfolio diversification tool for state reserves.
For the bill to become law, it must clear the state Senate and receive Governor Josh Shapiro’s approval. The Satoshi Action Fund reports that Shapiro’s administration has shown openness to initiatives aimed at strengthening financial resilience.
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