Up to 10% of state funds could be invested in Bitcoin to protect against inflation.
Pennsylvania could become the first U.S. state to integrate Bitcoin into its state treasury. According to Fox Business, Republican Representative Mike Cabell has introduced a bill in the State House of Representatives, called the Strategic Bitcoin Reserve Act, which would allow Pennsylvania to invest up to 10% of state funds in Bitcoin. Similar legislation is under consideration in 10 other states.
The initiative, presented on November 13, aims to use Bitcoin as a protection against inflation and to ensure stability during periods of economic uncertainty. The proposal would apply to a state fund that currently holds approximately $7 billion, with a potential investment of up to $700 million.
In a memorandum dated November 12, Cabell cited the example of major investment firms like BlackRock and Fidelity, which have already included Bitcoin in their portfolios as a diversification strategy against the volatility of other asset classes.
The bill, identified as HB 2664, is based on a model proposed by the Satoshi Action Fund, a Bitcoin advocacy group, and has gained support from Representative Aaron Kaufer as a co-sponsor.
Last October, the Pennsylvania House approved HB 2481, known as the Bitcoin Rights bill, which establishes a regulatory framework for protecting self-custody and digital asset payments.
It remains to be seen whether the proposal will secure the necessary votes for approval, but it nonetheless signals the growing interest of public institutions in Bitcoin.
