The Pennsylvania legislature has introduced groundbreaking legislation to establish a Bitcoin reserve, putting the state at the forefront of digital asset policy in the United States. The bill, led by Representative Mike Cabell, allows the state to allocate a portion of its reserves exclusively to Bitcoin as a strategic hedge against inflation and as an asset to secure the Commonwealth’s economic future.
The news comes after Pennsylvania passed the Bitcoin Rights Act through the House of Representatives and is currently pending in the PA Senate.
According to Dennis Porter, co-founder of the Satoshi Action Fund, the adoption of Bitcoin reserve legislation in Pennsylvania reflects a proactive stance in response to financial instability and inflationary pressures. Porter said at a recent Twitter Spaces event:
“This initiative puts Pennsylvania at the forefront of states preparing for a digital asset-centric future.”
Porter also noted that similar legislation is being considered in other states, highlighting Pennsylvania as a potential model for broader legislative efforts in the US.
Representative Cabell, a key figure in promoting the reserve initiative, acknowledged the concerted support of lawmakers and advocacy groups. He stated that while the reserve proposal is an important step, further efforts are needed to ensure smooth implementation. Cabell said:
“This work cannot be done by one legislator or even a group of legislators; advocates are needed who understand the complex policy issues and can help foster these relationships within state legislatures and Congress.”
As reported by the Satoshi Action Fund, the bill has already gained traction within the Pennsylvania House and efforts are underway to secure Senate approval and the governor’s approval.
Cabell cited the state’s $7 billion Rainy Day Fund as an example of assets that could be allocated to Bitcoin, especially in response to the inflationary erosion of purchasing power.
Cabell’s proposal calls for an initial Bitcoin allocation of up to 10%, although he noted that the practical starting point could be smaller, suggesting a range of 1% to 5%. Citing investment strategies from companies like Fidelity, Cabell noted that a modest Bitcoin allocation could serve as a prudent diversification measure within the state’s portfolio.
Porter further emphasized the importance of this initiative as a foundational step for digital asset adoption at the state level.
“We are seeing interest from at least 10 other states, with some lawmakers already drafting similar legislation.”
He suggested that Pennsylvania’s lead could accelerate nationwide adoption as other states observe the financial results of a Bitcoin reserve strategy.
Governor Josh Shapiro’s support will be critical to the bill’s passage. With bipartisan support, the measure aligns with Shapiro’s forward-looking approach to economic competitiveness, signaling Pennsylvania’s willingness to adopt innovative asset strategies. According to Satoshi Action Fund, Shapiro’s government is reportedly open to initiatives that promote financial resilience, especially amid ongoing economic uncertainties.
Should the bill pass, Pennsylvania would be the first state to adopt a Bitcoin reserve and set a precedent for digital asset management within state government. The initiative highlights a growing interest among state lawmakers to explore Bitcoin’s role as a fiscal stabilizer, with Pennsylvania leading the way in what could become a broader shift in state-level fiscal policy across the United States.
