beincrypto.com
Pennsylvania legislators have introduced a major bill today that could see the state hold Bitcoin as part of its financial strategy.
The Pennsylvania Bitcoin Strategic Reserve Act proposes allocating up to 10% of the state’s $7 billion treasury funds to Bitcoin. This initiative aims to hedge against inflation and diversify state investments beyond traditional financial instruments such as bonds and cash reserves.
A Groundbreaking Step Towards Bitcoin’s Mainstream Adoption
The bill marks Pennsylvania as the first state to pursue direct bitcoin acquisition. According to Fox Business, the states of Michigan and Wisconsin have taken a more cautious approach by offering indirect exposure to the digital asset. These states are allowing pension funds to invest in bitcoin exchange-traded funds.
Overall, this development coincides with President-elect Trump’s renewed push for crypto adoption. His incoming administration has signaled plans to establish a national bitcoin reserve within the first 100 days of his presidency.
Also, the president-elect has pledged to position the US as a global leader in the crypto industry. Througout the election campaign, he has been actively promising to introduce more accommodating regulations.
“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,” said the state’s Republican representative, Mike Cabell.
Pennsylvania’s Strategic Reserve Act is the second crypto legislation being considered at the state level this year. In October, Pennsylvania passed a first-of-its-kind bill to protect its residents’ rights to use Bitcoin as an effective payment method and maintain self-custody of the asset.
Trump’s Pro-Crypto Promise is in Full Swing
Trump is already making significant crypto-friendly moves even before he takes office in January. His transition team is considering three very pro-crypto candidates to replace the current SEC chair, Gary Gensler.
As reported by BeInCrypto, he is also considering pro-crypto republican Scott Bessent as a top candidate for the US Treasury Secretary role.
Trump’s campaign promises have resonated with the crypto community, highlighting plans to bolster Bitcoin’s role in the US economy. His administration is expected to prioritize initiatives that cement the country’s status as a crypto capital while exploring the strategic advantages of holding Bitcoin at both state and federal levels.