- Pennsylvania House introduces Bitcoin bill.
- The new bill would allow the state to invest in BTC.
- Legislators aim to use Bitcoin to hedge against inflation.
The US political landscape is rapidly moving towards crypto. After a landmark victory for pro-crypto candidates in the 2024 elections, states are moving towards recognizing crypto assets as well.
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Most recently, Pennsylvania introduced a bill enabling the state to invest in Bitcoin. The move would enable the state to buy as much as $7 billion in Bitcoin.
Pennsylvania’s Strategic Bitcoin Investment Proposal
Crypto is gaining a lot of support among US politicians. On Thursday, November 14, the Pennsylvania House of Representatives introduced the Pennsylvania Bitcoin Strategic Reserve Act. The bill would allow the state’s treasury to allocate up to 10% of its funds to Bitcoin, or up to $7 billion.
Republican Representative Mike Cabell, who introduced the bill, explained the benefits to the press. He emphasized Bitcoin’s role as a hedge against inflation. Moreover, investing in Bitcoin would diversify the state’s treasury, protecting it from market volatility.
“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,” Cabell explained.Pennsylvania Legislature Remains Divided
The legislature decides whether or not the crypto bill passes. Currently, Pennsylvania’s House has a narrow Democratic majority, with 102 representatives to 101 Republicans. The state Senate, on the other hand, is Republican-controlled.
Due to the narrow Democrat majority, the bill may face issues. Despite this, there is some bi-partisan support for pro-crypto legislation in the House. If passed, Pennsylvania would join a number of US states that introduced pro-crypto legislation.
Wyoming, Texas, and Florida are the leading US states with pro-crypto legislation. Notably, Wyoming has passed more than 20 blockchain-related laws since 2018. Texas, on the other hand, has positioned itself as a hub of crypto mining , while Florida is actively working on finding ways to attract blockchain companies.
On the Flipside
- Pro-crypto candidates scored major wins in the 2024 presidential elections. Even beyond Donald Trump’s victory, pro-crypto candidates secured major gains in the House and Senate.
- In November, a Michigan Pension Fund made a $10 million investment in Ethereum.
Why This Matters
The Pennsylvania bill could lead to a significant purchase of Bitcoin, positively affecting its price. Moreover, the move could encourage other states to follow.
Read more about the pro-crypto change in US politics:
Why Pro-Crypto Candidates Dominated 2024 U.S. Elections
Read more about Solana’s price predictions:
Solana to Outperform Bitcoin, Ethereum, Industry Survey Finds
