Pennsylvania House Moves To Add Bitcoin To State Balance Sheet As Reserve Asset

As President-elect Donald Trump prepares to take office again in January, his proposal to create a national Bitcoin reserve is gaining momentum across the United States. 

Several states are now reportedly considering plans to establish their own cryptocurrency reserves, reflecting a broader movement to recognize Bitcoin as a legitimate store of value.

In Pennsylvania, lawmakers have introduced the Pennsylvania Bitcoin Strategic Reserve Act, which would enable the state treasury to hold Bitcoin on its balance sheet. 

As FOX reports, this legislation aims to allocate up to 10% of the state’s approximately $7 billion in funds into Bitcoin, providing a hedge against inflation and diversifying investments beyond traditional assets like bonds and cash reserves. Republican state Representative Mike Cabell, the bill’s sponsor, stated: 

The Pennsylvania Bitcoin Strategic Reserve Act is a visionary step toward securing our state’s financial future. 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.

The introduction of this bill comes amid growing optimism about Trump’s potential impact on the cryptocurrency market, as the now 47th president has been vocal about key vows that could further accelerate the adoption and growth of digital assets, not only in the US, but globally. 

Following Trump’s Nov. 5 election victory over Vice President Kamala Harris, BTC’s price jumped more than 25% from around $67,000 to an all-time high of $93,250 per token and a market capitalization of over $1.8 trillion on Wednesday. 

This massive surge placed Bitcoin as the seventh-largest asset globally, trailing only gold and major US tech companies like Nvidia, Apple, Microsoft, Amazon, and Google.

In addition to the Bitcoin reserve legislation, Pennsylvania’s House recently passed a Bitcoin Rights bill, which aims to protect residents’ rights to self-custody digital assets and the use of BTC for payments. 

This bill, supported by the advocacy group Satoshi Action Fund, received significant bipartisan support and passed by a vote of 176 to 26. The group is optimistic that the strong public interest in the leading digital asset will carry over to the Strategic Reserve bill.

Dennis Porter, founder of the Satoshi Action Fund, noted their success in helping to craft and pass BTC-related legislation in 21 states. With ongoing discussions in 10 other states, he believes that the Pennsylvania initiative could serve as a model for broader adoption of digital assets in state investment strategies.

If the Pennsylvania Bitcoin Strategic Reserve Act is enacted, it would position the state as the first in the nation to hold BTC directly on its balance sheet, potentially signaling a shift toward more significant integration of digital assets into governmental economic strategies. 

Mike Cabell emphasized that the legislation sends a clear message: “Pennsylvania is ready to embrace bold, modern solutions to safeguard economic prosperity for generations to come.”

At the time of writing, BTC has fallen back to the $89,000 level, but is still up over 35% in the monthly time frame. 

Featured image from DALL-E, chart from TradingView.com