Pennsylvania: $7 billion fund may be invested in BTC

Source: Blockchain Knights

The Pennsylvania legislature has proposed landmark legislation for a BTC reserve, putting the state at the forefront of U.S. digital asset policy.

Led by Rep. Mike Cabell, the bill would enable Pennsylvania to dedicate a portion of its reserve assets to BTC as a strategic hedge against inflation and to secure Pennsylvania’s economic assets for the future.

The news comes after the Pennsylvania House of Representatives passed the BTC Bill of Rights, which is currently being considered by the Pennsylvania Senate.

According to Dennis Porter, co-founder of the Satoshi Action Fund, Pennsylvania’s passage of BTC reserve legislation reflects a proactive stance in addressing financial instability and inflationary pressures.

“This move puts Pennsylvania at the forefront of states preparing for a digital asset-centric future,” Poter said at a recent X-Space event.

Poter also noted that other states are considering similar legislation, highlighting Pennsylvania’s potential to serve as a model for broader legislative efforts across the United States.

Rep. Cabell, a key figure in promoting the reserve initiative, acknowledged the collaborative support from lawmakers and advocacy groups.

Cabell said that while the reserve proposal marks an important step forward, further work is needed to ensure smooth implementation.

“This work cannot be done by one legislator or even a group of legislators. It requires advocates who understand the intricacies of policy and can help facilitate these relationships within the state legislature and Congress.”

According to the Satoshi Action Fund, the bill has already gained support in the Pennsylvania House of Representatives and is currently working towards Senate approval and the support of the governor.

Cabell pointed to Pennsylvania’s $7 billion “Rainy Day Fund” as an example of an asset that could be allocated to BTC, especially as inflation erodes purchasing power.

Cabell’s proposal calls for an initial allocation of up to 10% of BTC, though he noted that the actual starting point could be lower, suggesting between 1%-5%.

Cabell, citing investment strategies from firms like Fidelity, noted that a modest BTC allocation could serve as a prudent diversification measure in a state’s portfolio.

Poter further highlighted the significance of the move as a foundational step in “state-level adoption of digital assets.”

“We’ve seen at least ten other states express interest, with some legislators already in the drafting process preparing to propose similar legislation.”

Poter believes that Pennsylvania’s lead could accelerate adoption across the country as other states observe the financial outcomes of a BTC reserve strategy.

The support of Pennsylvania Governor Josh Shapiro was critical to the enactment of the bill.

With bipartisan support, the measure aligns with Shapiro’s forward-thinking approach to economic competitiveness, demonstrating that Pennsylvania is ready to adopt innovative asset strategies.

As reported by the Satoshi Action Fund, Shapiro’s administration is open to initiatives that promote financial resilience, especially amid the current economic uncertainty.

If the bill is passed, Pennsylvania will become the first state to adopt BTC reserves and set a precedent for state digital asset management.

This move highlights the growing interest of state lawmakers in exploring the role of BTC as a fiscal stabilizer, and Pennsylvania will lead a broad shift in state-level fiscal policies across the United States.