Pennsylvania lawmakers have proposed a bill to pump $700 million of the state’s treasury into Bitcoin. The Pennsylvania Bitcoin Strategic Reserve Act wants to throw 10% of the state’s $7 billion into the world’s most famous cryptocurrency.
If it passes, Pennsylvania will become the first state in the country to stash Bitcoin in its treasury. Donald Trump’s return to the White House is already reshaping America’s crypto narrative. The man hasn’t even stepped back into the Oval yet, but Bitcoin’s price is partying like it’s 2021.
In just a week, price shot up 20%, blasting past $93,000 per token. Its market cap? A casual $1.8 trillion. This makes Bitcoin the seventh-largest asset on the planet. Bigger than anything not named gold, Nvidia, Apple, Microsoft, Amazon, or Google.
Trump’s campaign promises to make the U.S. the “crypto capital of the planet” and turn Bitcoin into a “permanent national asset” are fueling this frenzy. Pennsylvania just might be the first state to ride that wave.
State-level crypto moves are heating up
Back in October, Pennsylvania’s House of Representatives passed the Bitcoin Rights bill. This bill was all about giving people the right to self-custody their digital assets and use Bitcoin as legal tender. Basically, it’s saying, “You can hold your keys, and you can pay with them too.” That bill is now waiting for the state Senate and Governor Josh Shapiro to give it a green light.
The advocacy group Satoshi Action Fund had a big hand in crafting that law, and they’re back at it again with the strategic reserve bill. Dennis Porter, the group’s founder, is riding high on the success of the Bitcoin Rights bill. That legislation passed the Democrat-led House with a landslide: 176 votes to 26.
“We’re expecting the same kind of energy for this reserve bill,” Porter said. The group’s mission is clear—mainstream Bitcoin at the state level. And Pennsylvania isn’t the only one on their radar. Porter says they’re already in talks with ten other states about drafting similar bills.
If this reserve bill passes, it’ll open a new chapter in state finance. Mike Cabell, the Republican lawmaker spearheading this initiative, said it’s about preparing for the future. “This is about shielding Pennsylvania from inflation and putting us on the map as a leader in financial innovation.”
He plans to push this bill to the House floor when the next legislative session starts on January 7.
The bigger picture
This state-level push ties into a larger, national conversation about Bitcoin. Pro-crypto Republican Senator Cynthia Lummis from Wyoming is also working on her own Bitcoin reserve bill. She plans to propose it during the first 100 days of Trump’s presidency.
Trump might not even wait for Congress to get involved. He could use executive powers to kickstart a national Bitcoin reserve, tapping into the existing stockpile of seized Bitcoin and purchasing more.
Experts suggest the federal government could acquire up to 200,000 Bitcoins per year over five years, potentially amassing 1 million Bitcoins—about 5% of the total supply. The funding would come from reallocating Federal Reserve assets like bonds, avoiding any increase in national debt.
A Bitcoin reserve, whether at the state or national level, would shake up the crypto market. For starters, it would stabilize Bitcoin prices. Right now, BTC is notoriously volatile, with prices swinging wildly based on speculation.
If Pennsylvania or the federal government started holding massive amounts of Bitcoin, it would reduce market supply and help stabilize prices. This could have global implications. Other countries might follow suit, adopting similar policies to hedge against inflation.
But not everyone is thrilled about the idea. Critics argue that this move could inflate Bitcoin prices at the public’s expense, effectively transferring wealth from taxpayers to Bitcoin holders.
Others worry about the ethical issues of governments holding and potentially manipulating a decentralized asset. Bitcoin was built to resist government control, and using it as a state financial tool feels like a contradiction to some.
Source: https://www.cryptopolitan.com/pennsylvania-bill-proposes-700m-bitcoin-allocation-from-state-treasury/