Pennsylvania Lawmaker Proposes Bitcoin Investment Bill

A Pennsylvania lawmaker is advocating for a new bill allowing the state treasurer to invest in bitcoin, mirroring U.S. Sen. Cynthia Lummis' similar proposal.

Strategic Bitcoin Reserve Act

The Strategic Bitcoin Reserve Act is co-sponsored by Republican representatives Mike Cabell and Aaron Kaufer, and has been introduced in the Pennsylvania House. This bill permits the state treasurer to invest in bitcoin, digital assets, and crypto-based exchange-traded products. The news was first reported by Fox Business on Thursday.

Economic Benefits

In a memo filed this week, Cabell stated that investing in bitcoin could act as a "hedge against inflation." He emphasized that numerous financial institutions and sovereign governments, including the United States, have turned to bitcoin to protect their portfolios from economic instability. Prominent investment firms like BlackRock, Fidelity, and Franklin Templeton now offer bitcoin options, and states such as Wisconsin have begun making strategic investments in digital assets. Cabell noted that studies indicate that holding a small portion of reserves in bitcoin can enhance a portfolio's resilience and diversification.

Cabell did not respond to requests for further comments.

Federal Legislation

On the federal level, Sen. Lummis, R-Wyo., has introduced a similar bill titled the "Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide Act of 2024," or the BITCOIN Act. This legislation outlines a pathway for U.S. states and federal agencies to hold bitcoin.

Lummis, who is a bitcoin holder, has been a longstanding advocate for the crypto industry. She believes her bill could be passed within the first 100 days of the Trump administration, given the president-elect's positive stance towards crypto advocates during his campaign.

Lummis stated, "I believe we can get this done with bipartisan support in the first 100 days IF we have the support of the people. It is a game changer for the solvency of our nation. Let’s put America on sound financial footing and pass the Bitcoin Act!"