As the second Donald Trump presidency looms, states across the U.S. are looking to embrace cryptocurrencies as part of their financial strategies.
Pennsylvania is at the forefront of this movement, with lawmakers introducing groundbreaking legislation to establish the first state-managed Bitcoin reserve. The bill would allow the state’s treasury to allocate up to 10% of its $7 billion in funds into Bitcoin.
The move is part of a broader trend sparked by President-elect Donald Trump’s renewed push for the U.S. to become the “crypto capital of the planet.” As Trump prepares to take office in January, his administration’s stance on digital assets fuels optimism within the crypto community.
Bitcoin Historic Price Action
Specifically, Bitcoin’s value surged over 35% in the week following Trump’s election victory. It reached a record high of over $93,400 and a market capitalization surpassing $1.85 trillion. This valuation briefly elevated Bitcoin to the seventh most valuable asset globally, overtaking Saudi Aramco and silver.
However, with the recent market-wide pullback, Bitcoin is now at position eight, still above silver.
Pennsylvania Bitcoin Strategic Reserve Bill Expected to Pass
The Pennsylvania Bitcoin Strategic Reserve Act is the latest effort by state lawmakers to incorporate digital assets into state portfolios.
State Rep. Mike Cabell, who sponsored the bill, emphasized that holding Bitcoin in the state’s reserves would protect Pennsylvania from inflation and diversify its assets beyond cash and bonds.
This new initiative follows a similar move in the state last month when the Pennsylvania House passed the Bitcoin Rights Bill. The proposal aims to secure residents’ rights to self-custody their crypto assets and use Bitcoin as a legitimate payment method.
The Bitcoin Rights Bill is now moving through the Republican-led state Senate, with hopes that Governor Josh Shapiro will sign it into law.
Notably, the Bitcoin Strategic Reserve Act is backed by the Satoshi Action Fund (SAF), a group that has been pivotal in promoting Bitcoin legislation in multiple states. SAF founder Dennis Porter expressed confidence that the Bitcoin Rights Bill and the new reserve legislation would succeed.
Essentially, Pennsylvania would become the first state to hold Bitcoin directly on its balance sheet if this bill succeeds. This could transform how state governments view and integrate digital assets into their financial strategies.
Notably, SAF is currently discussing implementing similar initiatives with lawmakers in 10 other states.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
Source: https://thecryptobasic.com/2024/11/15/pennsylvania-moves-to-create-bitcoin-reserve-with-up-to-10-of-7-billion-in-state-funds/?utm_source=rss&utm_medium=rss&utm_campaign=pennsylvania-moves-to-create-bitcoin-reserve-with-up-to-10-of-7-billion-in-state-funds