A Pennsylvania lawmaker is pushing for a new bill that would allow the state treasurer to invest in bitcoin, following in the footsteps of U.S. Sen. Cynthia Lummis' similar proposal.
The Strategic Bitcoin Reserve Act is cosponsored by Republican Reps. Mike Cabell and Aaron Kaufer and has been introduced in the Pennsylvania House. The bill would allow Pennsylvania's state treasurer to invest in bitcoin, digital assets and crypto-based exchange-traded products. The news was first reported by Fox Business on Thursday.
Cabell said investing in bitcoin could "hedge against inflation," in a memo filed this week.
"In recent years, many financial institutions and sovereign governments, including the United States, have invested in Bitcoin to shield their portfolios from economic volatility. The world’s largest investment firms — such as BlackRock, Fidelity and Franklin Templeton — now offer Bitcoin options, and states like Wisconsin have also made strategic investments in digital assets," Cabell said in the memo. "Studies suggest that holding a small percentage of reserves in Bitcoin can contribute to a well-diversified and resilient portfolio."
Cabell did not respond to a request for comment.
On the federal level, Sen. Lummis, R-Wyo., has introduced a similar bill called the "Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide Act of 2024," a.k.a. the BITCOIN Act. That bill lays out a pathway for U.S. states and federal agencies to hold bitcoin.
Lummis, a bitcoin holder, has been a vocal supporter of the crypto industry for years. She has signaled that her bill could be passed in the first 100 days in the Trump administration, considering the president-elect's many overtures to crypto advocates on the campaign trail.
"I believe we can get this done with bipartisan support in the first 100 days IF we have the support of the people," Lummis said in a post on X on Monday. "It is a game changer for the solvency of our nation. Let’s put America on sound financial footing and pass the Bitcoin Act!"
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