Pennsylvania Pushes Bill to Invest in Bitcoin as Inflation Hedge
Pennsylvania lawmakers propose a bill to allow state investments in bitcoin, aiming to use it as a hedge against inflation and economic instability.
Pennsylvania lawmakers have introduced a new bill, the Strategic Bitcoin (BTC) Reserve Act, which would allow the state treasurer to invest in bitcoin, digital assets, and crypto-based exchange-traded products. Sponsored by Republican Representatives Mike Cabell and Aaron Kaufer, this proposal aims to leverage bitcoin as a “hedge against inflation,” providing the state with a potential tool to protect against economic uncertainty.
In a memo, Cabell highlighted that various financial institutions and even governments, including the U.S., have invested in Bitcoin to safeguard their portfolios from economic fluctuations. Major investment firms like BlackRock, Fidelity, and Franklin Templeton now offer Bitcoin options, and some states, such as Wisconsin, have started making strategic digital asset investments. Cabell argues that holding a small portion of reserves in Bitcoin could help create a well-diversified and resilient portfolio for Pennsylvania.
The bill follows a similar federal-level proposal by Sen. Cynthia Lummis of Wyoming, known as the BITCOIN Act, which stands for "Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2024." Lummis’s bill encourages U.S. states and federal agencies to invest in bitcoin, providing a pathway for broader public sector involvement in the digital asset market.
Sen. Lummis, a long-time supporter and holder of bitcoin, has voiced strong support for the crypto industry. She believes her proposal could gain bipartisan support and pass within the first 100 days of the incoming Trump administration, pointing to President-elect Trump’s pro-crypto stance. In a recent statement, Lummis called on public support to help pass the Bitcoin Act, asserting that it would strengthen America’s financial stability.
The Strategic Bitcoin Reserve Act marks Pennsylvania’s entry into the growing trend of government interest in digital assets, joining a movement where states see crypto investments as a potential strategy for safeguarding financial assets.
