Pennsylvania bill proposes 10% Bitcoin reserve for treasury

Pennsylvania lawmakers have introduced a bill allowing the state’s treasury to invest up to 10% of its funds in Bitcoin (CRYPTO:BTC).

Representative Mike Cabell, who proposed the legislation, described Bitcoin as a potential hedge against inflation, emphasising that it could provide “stability in uncertain economic times.”

The bill, submitted to the Pennsylvania House on November 13, would enable the state to allocate a portion of its General Fund, Rainy Day Fund, and State Investment Fund to Bitcoin.

As of November, Pennsylvania’s General Fund held over $9.7 billion, while the Rainy Day Fund was valued at approximately $7 billion.

If approved, this legislation could translate into a multibillion-dollar investment in Bitcoin.

Cabell referenced investment giants like BlackRock and Fidelity, which have turned to Bitcoin as a safeguard against economic volatility.

Representative Aaron Kaufer co-sponsored the bill, known as HB 2664.

However, it remains unclear if it has sufficient support to pass.

The proposal aligns with a framework suggested by the Satoshi Action Fund, a Bitcoin advocacy group.

In October, the Pennsylvania House passed HB 2481, a bill focused on establishing a regulatory framework for self-custody and cryptocurrency payments.

Both pieces of legislation highlight the state's push to integrate digital assets into its financial strategy.

This state initiative reflects broader Republican goals at the national level.

Following the recent U.S. election, Senator Cynthia Lummis stated her intention to push for legislation to create a strategic Bitcoin reserve.

With Republicans set to control the Senate in 2025, these proposals could gain traction.

While other nations like El Salvador and Bhutan already hold Bitcoin as part of their reserves, Galaxy Digital founder Mike Novogratz speculated that President-elect Donald Trump may not prioritise establishing a national Bitcoin reserve during his term.

At the time of reporting, the Bitcoin price was $88,161.03.