The proposed bill would allow the Pennsylvania Treasury to invest up to 10% of its budget, or billions of dollars, in Bitcoin as a hedge against inflation.
On November 13, Republican Congressman Mike Cabell introduced the Pennsylvania House of Representatives bill called “Strategic Bitcoin Reserve” (HB 2664), which would allow the state Treasury to invest up to 10% of its total assets in Bitcoin. If passed, this would be one of the boldest policies in the US to integrate cryptocurrencies into public budget management.
Under the bill, large funds such as the General Fund (worth over $9.7 billion), the Rainy Day Fund (about $7 billion), and the State Investment Fund would be allowed to be used to buy Bitcoin. This means that billions of dollars could be converted into crypto assets, with the goal of protecting the state budget from the effects of inflation.
Rep. Cabell noted that Bitcoin is increasingly recognized as a store of value, as evidenced by the increased investment in this asset by major financial companies such as BlackRock and Fidelity. He said that investing in Bitcoin is not only an effective measure against inflation, but also opens up opportunities for Pennsylvania to be at the forefront of new financial technology trends.
The bill is also co-sponsored by Rep. Aaron Kaufer, an influential figure in blockchain-related legislation. However, whether HB 2664 will receive enough support to pass remains to be seen.
HB 2664 is not only a reflection of the changing perception of Bitcoin, but also part of a larger trend. Pennsylvania recently passed a law protecting the right to self-custody and payment in cryptocurrencies (HB 2481), a move that shows the state is moving closer to legalizing and promoting the application of cryptocurrencies in economic life.
Furthermore, the idea of creating a national Bitcoin reserve is also being actively promoted by some federal lawmakers. Senator Cynthia Lummis, a strong Bitcoin advocate, has stated her intention to introduce similar legislation at the national level if Republicans gain control of the Senate in 2025.
Not all sentiment is positive, however. Mike Novogratz, founder of Galaxy Digital, predicts that President-elect Donald Trump may not prioritize building a Bitcoin reserve during his term, despite strong support from lawmakers. Meanwhile, on the international stage, countries like El Salvador and Bhutan have taken the lead in adding Bitcoin to their government balance sheets, giving locales like Pennsylvania the impetus to consider a similar move.
