Source: cryptoslate
Compiled by: Blockchain Knight
The Pennsylvania legislature has proposed landmark legislation for establishing a BTC reserve, putting the state at the forefront of U.S. digital asset policy.
The bill, led by Rep. Mike Cabell, would enable Pennsylvania to dedicate a portion of its reserves to BTC as a strategic hedge against inflation and to secure Pennsylvania’s economic assets for the future.
The news comes after the Pennsylvania House of Representatives passed the BTC Bill of Rights, which is currently being considered by the Pennsylvania Senate.
According to Dennis Porter, co-founder of the Satoshi Action Fund, Pennsylvania’s passage of BTC reserve legislation is a proactive stance against financial instability and inflationary pressures.
“This move puts Pennsylvania at the forefront of states preparing for a future centered around digital assets,” Poter said at a recent X-Space event.
Poter also noted that other states are considering similar legislation, highlighting Pennsylvania’s potential to serve as a model for broader legislative efforts across the country.
Rep. Cabell, a key figure in advancing the reserve initiative, acknowledged the collaborative support from legislators and advocacy groups.
Cabell said that while the sanctuary proposal marks an important step, further work is needed to ensure smooth implementation.
“This work cannot be done by one legislator or even a group of legislators alone. It requires advocates who understand the intricacies of policy and can help facilitate these relationships within state legislatures and Congress.”
According to the Satoshi Action Fund, the bill has already gained support in the Pennsylvania House of Representatives and is currently working towards Senate approval and support from the governor.
Cabell pointed to Pennsylvania’s $7 billion “rainy day fund” as an example of an asset that could be allocated to BTC, especially as inflation erodes purchasing power.
Cabell’s proposal calls for an initial distribution of up to 10% of BTC, though he noted that the actual starting point could be lower, suggesting between 1% and 5%.
Citing investment strategies from firms like Fidelity, Cabell noted that a modest BTC allocation could serve as a prudent diversification measure within a nation’s portfolio.
Poter further emphasized the importance of this move as a foundational step in "state-level adoption of digital assets."
"We've seen at least 10 other states express interest in this, and some legislators are already in the drafting process to introduce similar legislation."
Poter believes that Pennsylvania’s leadership could accelerate adoption across the country as other states observe the financial results of a BTC reserve strategy.
Pennsylvania Governor Josh Shapiro’s support was crucial to the bill’s enactment.
With bipartisan support, the measure aligns with Shapiro’s forward-thinking approach to economic competitiveness and demonstrates Pennsylvania is ready to adopt an innovative asset strategy.
According to the Satoshi Action Fund, Shapiro’s administration is open to initiatives to promote financial resilience, especially amid the current economic uncertainty.
If the bill is passed, Pennsylvania would become the first state to adopt BTC reserves and set a precedent for state government digital asset management.
The move highlights growing interest among state lawmakers in exploring the role of Bitcoin as a fiscal stabilizer, with Pennsylvania leading a broad shift in state-level fiscal policy across the country.
