Pennsylvania could soon become a trailblazer in state-level cryptocurrency investments, as Republican lawmakers push for legislation to establish a strategic Bitcoin reserve. The proposal, known as the Strategic Bitcoin Reserve Act, seeks to authorize the state treasurer to invest up to 10% of the general fund, emergency savings, and state investment funds in Bitcoin.
Introduced by Rep. Mike Cabell, R-Dallas, House Bill 2664 positions Bitcoin as a hedge against inflation, leveraging its decentralized blockchain-based system, which operates independently of traditional financial market fluctuations.
“Investing in Bitcoin is a way to ‘hedge against inflation,’” Cabell stated, emphasizing the potential for cryptocurrency to safeguard state finances from economic instability.
Bitcoin has gained traction in the wake of Donald Trump’s election victory, buoyed by his pro-crypto platform. At the time of publication, Bitcoin’s value stands at $92,406.06, enjoying a robust upward trend. However, its inherent volatility—currently double that of gold—remains a key concern for skeptics.
The federal government already holds approximately 210,000 Bitcoin, valued at over $19 billion, but this reserve was largely obtained through asset seizures during criminal investigations. Pennsylvania’s proposed reserve would differ by using state funds to purchase Bitcoin, exposing it to potential losses during downturns.
Cryptocurrency advocates are optimistic about Bitcoin’s future under Trump’s administration. At a Bitcoin conference in Nashville, Trump pledged to establish a Bitcoin and Crypto Presidential Advisory Council, build a national Bitcoin stockpile, and replace Securities and Exchange Commission (SEC) Chair Gary Gensler.
“I will appoint a new SEC chairman who believes America should build the future, not block the future, which is what they’re doing,” Trump declared, drawing cheers from the crypto community.
Gensler’s tenure has faced criticism for the SEC’s regulatory stance, particularly its lawsuits against major crypto exchanges. “We are not afraid to litigate matters, whether against the best-resourced founders, the oldest firms, the newest industries, and yes, the largest crypto exchanges,” Gensler said in a speech last year.
Cabell’s bill comes on the heels of earlier legislation aimed at creating a framework for blockchain and digital asset use while prohibiting additional taxes on crypto transactions. The Satoshi Action Fund, a lobbying group advocating Bitcoin-friendly policies, expects similar bills to emerge in other states.
The energy-intensive nature of Bitcoin mining, often criticized for its environmental impact, remains a contentious issue. However, proponents argue that decentralized mining could address emissions by utilizing methane gas from agriculture and orphan wells across Pennsylvania.
The Strategic Bitcoin Reserve Act could position Pennsylvania at the forefront of digital asset innovation, but questions around volatility and environmental concerns are likely to fuel ongoing debate.
