President-elect Donald Trump's proposal to establish a national Bitcoin BTC/USD reserve has sparked a wave of support across the United States, with Pennsylvania leading the charge by considering its own state-held cryptocurrency reserve.
What Happened: This movement aligns with Trump’s promise to make the U.S. the "crypto capital of the planet" and has fueled legislative efforts to recognize Bitcoin as a secure state asset, FOX Business reports.
In Pennsylvania, lawmakers introduced the Pennsylvania Bitcoin Strategic Reserve Act, the first bill of its kind, which would authorize the state's treasury to invest up to 10% of its $7 billion reserves into Bitcoin to hedge against inflation and diversify from traditional assets like bonds and cash.
The bill is set to be a historic move toward recognizing digital assets in state portfolios.
“The Pennsylvania Bitcoin Strategic Reserve Act is a forward-thinking move to protect our financial future," said Republican state Rep. Mike Cabell, who sponsors the bill. "By integrating Bitcoin, we're safeguarding Pennsylvania against inflation's unrelenting impact while positioning ourselves as pioneers in financial resilience and innovation."
The push for state-held Bitcoin reserves follows a recent upswing in Bitcoin's value, with prices jumping 20% in the week following Trump's election victory.
Bitcoin recently reached an all-time high of over $93,000 per token, making it the seventh-largest global asset, trailing only behind gold and tech giants like Apple AAPL, Amazon AMZN and Google GOOGL.
This state legislation echoes growing momentum for pro-Bitcoin policies at the federal level.
Also Read: Ben Horowitz: ‘The Biden Regulators Lied About Crypto’
U.S. Senator Cynthia Lummis of Wyoming, a well-known cryptocurrency advocate, plans to introduce a national Bitcoin reserve bill within the first 100 days of Trump's presidency.
Pennsylvania has also advanced the Bitcoin Rights bill, a proposal aimed at protecting residents' rights to self-custody and use Bitcoin for payments.
The bipartisan support for this bill, which passed the Democrat-led House by a vote of 176-26, sets a positive precedent for the Pennsylvania Bitcoin Strategic Reserve Act.
Dennis Porter, founder of the Satoshi Action Fund (SAF), an advocacy group that helped develop both bills, sees Pennsylvania's efforts as a model for other states.
Porter noted that SAF is already in discussions with ten other states about enacting similar legislation, saying, "With public interest in Bitcoin at an all-time high, we anticipate both bills will pass and, ideally, be signed into law next year."
If successful, Pennsylvania would become the first state to incorporate Bitcoin directly into its balance sheet, potentially setting a trend for other states to integrate digital assets into economic strategy.
"This legislation sends a powerful message," Cabell emphasized. "Pennsylvania is ready to adopt modern financial solutions to secure prosperity for future generations."
The evolution of Pennsylvania's pro-Bitcoin stance highlights a significant trend in the adoption of cryptocurrency at the state level and may pave the way for digital assets to play an increasingly prominent role in U.S. economic policy.
As the policy debate intensifies, the cryptocurrency community, government officials, and investors will gather at Benzinga’s Future of Digital Assets event on Nov. 19, to explore how these legislative shifts could shape the future of digital finance in America.
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