Emily Walker
As President-elect Donald Trump gets ready to assume office in January, his initiative to establish a national Bitcoin reserve is seeing growing interest throughout the U.S.
Many states are contemplating their own cryptocurrency reserves, signaling an increasing acceptance of Bitcoin as a valid investment option.
Pennsylvania’s Bitcoin Reserve Initiative
Pennsylvania has introduced the Pennsylvania Bitcoin Strategic Reserve Act, which would allow the state to hold Bitcoin in its treasury.
According to FOX reports, the proposed law could allocate up to 10% of the state’s roughly $7 billion funds into Bitcoin. This move aims to mitigate inflation and diversify investments beyond conventional assets such as cash and bonds. The bill’s sponsor, Republican state Representative Mike Cabell, commented:
The Pennsylvania Bitcoin Strategic Reserve Act is a forward-thinking approach to securing our financial future. By including Bitcoin in our reserves, we are shielding Pennsylvania from inflation and positioning our state at the forefront of financial innovation.
The enactment of this bill comes at a time of heightened optimism regarding Trump’s influence on the cryptocurrency sector, as the soon-to-be 47th president has made statements that could enhance the adoption of digital assets both in the U.S. and internationally.
After Trump’s Nov. 5 election win against Vice President Kamala Harris, Bitcoin’s value surged over 25%, reaching an all-time high of $93,250 per token and a market cap exceeding $1.8 trillion. This spike has made Bitcoin the seventh-largest asset worldwide, only behind gold and leading U.S. tech companies such as Nvidia, Apple, Microsoft, Amazon, and Google.
A Template for Other States?
Along with the reserve legislation, the Pennsylvania House has also passed a Bitcoin Rights bill. This legislation aims to safeguard citizens’ rights to manage their own digital assets and to use Bitcoin for transactions.
The bill, backed by the Satoshi Action Fund, received significant bipartisan support with a vote of 176 to 26. The advocacy group is hopeful that the strong public enthusiasm for Bitcoin will extend to the Strategic Reserve initiative.
Dennis Porter, founder of the Satoshi Action Fund, mentioned their efforts in shaping and passing Bitcoin-related laws in 21 states, with talks ongoing in 10 more. He believes that Pennsylvania’s actions could serve as a model for wider acceptance of cryptocurrencies in state investment policies.
If the Pennsylvania Bitcoin Strategic Reserve Act is successful, it would make Pennsylvania the first state to include Bitcoin directly on its financial statements, potentially indicating a broader adoption of digital assets in governmental economic frameworks.
Mike Cabell highlighted that this legislation sends a decisive message: “Pennsylvania is prepared to adopt innovative solutions to ensure economic stability for future generations.”
As of now, Bitcoin has dipped back to around $89,000 but remains over 35% higher for the month.
Featured image from DALL-E, chart from TradingView.com