This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
According to a Fox Business report, Pennsylvania legislators have introduced a new bill in the House to create a Bitcoin strategic reserve in the state. Bitcoin has crossed record-high prices following President-elect Donald Trump’s victory in the November election, and the bill is the result of action by the Bitcoin advocacy group, the Satoshi Action Fund. It is the second legislation of its kind in the Pennsylvania legislature, with an earlier bill receiving bipartisan support for allowing Bitcoin’s use as a currency and residents’ rights to self-custody of digital assets.
Legislation Moved In Pennsylvania To Create Bitcoin Strategic Reserve
The growing popularity of Bitcoin has led several countries to adopt the currency as their strategic reserve. However, if today’s bill introduced in the Pennsylvania legislature is passed and signed by Governor Josh Shapiro, then the state will become the first in the US to have created a strategic Bitcoin reserve.
Details about the bill reported by Fox News show that its proposers aim to allocate 10% of the state’s $7 billion funds to the strategic cryptocurrency reserve. Its proposers hope that Bitcoin will serve as a hedge against inflation and allow the state to expand its investments from traditional securities such as bonds.
The latest legislation significantly increases the role that its proposers hope for Bitcoin to play in the state. Supported by the Satoshi Action Fund (SAF), Pennsylvania’s previous cryptocurrency bill was passed by a bipartisan vote in October. It protected residents’ rights to the self-custody of digital assets and also protected the use of Bitcoin as a means of payment in the state.
As per Fox Business, the bill, titled the Pennsylvania Bitcoin Strategic Reserve Act, was introduced by Republican State Representative Mike Cabell. He believes that the legislation will bolster the state’s resilience and innovation.
While few additional details of the bill are available, the SAF shared with Fox that the group is pushing for similar legislation in ten states. The states were unnamed, and Representative Cabell commented to the publication that his legislation would “safeguard economic prosperity for generations to come.“
The SAF’s previous Pennsylvanian cryptocurrency bill, called the Bitcoin Rights Act, was different in scope than the Pennsylvania Bitcoin Strategic Reserve Act. Its difference stemmed from a focus on individuals’ Bitcoin dealings, while the new legislation focuses on state-wide matters. As a result, its sponsor and supporters will have to work hard to ensure bipartisan support.
Bitcoin’s price has set new records in the wake of President-elect Donald Trump’s victory in the November election. During his campaign, Trump had taken a significantly pro-Bitcoin approach when compared to his rival, and Bitcoin bulls are hopeful that the incoming administration will be friendly to their cryptocurrency.
After jumping by 32.5% between the election and Wednesday, Bitcoin’s price underwent some correction on Thursday to pare back the gains to 28.8%. It has lost 4% over the course of trading today but is up by 99% year-to-date on the back of favorable catalysts, including exchange-traded fund (ETF) approval.
