Pennsylvania House Moves To Create Strategic Bitcoin Reserve

An increasing number of U.S. states are making moves to incorporate Bitcoin as part of their strategic fiscal reserves.

On Nov. 14, Pennsylvania house representatives introduced the Pennsylvania Bitcoin Strategic Reserve Act, a bill that would allow the state’s treasury to hold Bitcoin on its balance sheet.

The bill calls for Pennsylvania to allocate up to 10% of its roughly $7 billion in state-owned reserve assets in a bid to hedge against inflation and diversify its investments. The bill was authored in partnership with the Satoshi Action Fund (SAF), a non-profit Bitcoin advocacy group.

"The Pennsylvania Bitcoin Strategic Reserve Act is a visionary step toward securing our state's financial future," said Representative Mike Cabell, a proponent of the bill. "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."

Last month, the Pennsylvania House passed a bill enshrining residents’ right to use Bitcoin as a means of payment and to self-custody digital assets with a majority of 176 votes to 26. The bill still needs to pass the state’s senate, before moving to Governor Josh Shapiro to be signed into law.

The (SAF) helped draft both bills and hopes they will become a blueprint for future states’ efforts to introduce crypto-friendly legislation. SAF said it is currently in talks with 10 other states.

"This Act not only benefits Pennsylvania's economy but also sets a new standard for other states and nations seeking to adopt innovative strategies against inflation," said Dennis Porter, the CEO of SAF. "With a strategic Bitcoin reserve, the state of Pennsylvania can protect its economy and its people from inflation and financial hardship."

National Bitcoin reserve

The move follows Donald Trump winning the recent U.S. presidential election, with Trump pledging that none of the U.S. government’s Bitcoin — a more than $19 billion stash comprising assets seized through law enforcement actions — will be sold during his second term in the Oval Office.

Senator Cynthia Lummis, a longstanding ally of the web3 industry, also introduced a bill advocating for the creation of a national strategic Bitcoin reserve on July 31. The Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2024 calls for the government to accumulate up to 200,000 Bitcoin annually for five years.

“We are going to build a strategic Bitcoin reserve,” Lummis tweeted Following Trump’s election win.

The price of Bitcoin is up 18.5% in the past seven days, according to The Defiant's crypto price feeds.

U.S. states move to embrace BTC

Pennsylvania is not alone in looking to embrace crypto.

On Nov. 4, the State of Michigan Retirement System revealed it acquired $11.1 million worth of Ethereum ETF shares, following a $6.6 million worth of Bitcoin ETF shares in July.

On Oct. 30, Florida’s Chief Financial Officer, Jimmy Patronis, urged the State Board of Administration to assess the feasibility of adding digital assets to its retirement fund. Patronis also hinted that Florida would expand its $800 million stash of digital assets should Trump win the presidency.

A May 14 SEC filing also revealed that Wisconsin's state pension fund has purchased $163 million worth of spot Bitcoin ETF shares.