Pennsylvania: $7 billion fund may invest in BTC
Source: cryptoslate
Compilation: Blockchain Knight
The Pennsylvania legislature has proposed landmark legislation to establish BTC reserves, putting the state at the forefront of US digital asset policies.
The bill, led by Congressman Mike Cabell, enables Pennsylvania to allocate a portion of its reserve assets specifically for BTC as a strategic hedge against inflation and to ensure Pennsylvania's future economic assets.
This news was released after the Pennsylvania House of Representatives passed the BTC Rights Act, which is currently under review by the Pennsylvania Senate.
According to Dennis Porter, co-founder of Satoshi Action Fund, Pennsylvania's BTC reserve legislation reflects a positive stance in addressing financial instability and inflationary pressures.
Poter recently stated at the X space event, "This initiative puts Pennsylvania at the forefront of the states and prepares for a future centered around digital assets
Poter also pointed out that other states are considering similar legislation, emphasizing that Pennsylvania has the potential to become a model for broader legislative work across the United States.
Congressman Cabell is a key figure in driving the Reserve Initiative, and he acknowledges the collaborative support from lawmakers and advocacy groups.
Cabell stated that although the proposal for protected areas marks an important step forward, further efforts are still needed to ensure smooth implementation.
This job cannot be accomplished by a single legislator or even a group of legislators. It requires an understanding of complex policies and can help advocate for these relationships within state legislatures and Congress
According to the Satoshi Nakamoto Action Fund, the bill has received support in the Pennsylvania House of Representatives and is currently working to secure approval from the Senate and support from the governor.
Cabell pointed out that the $7 billion "Rainy Day Fund" in Pennsylvania is an example that can be allocated to BTC assets, especially when inflation erodes purchasing power.
Cabell's proposal requires an initial allocation ratio of up to 10% for BTC, but he points out that the actual starting point may be lower, suggesting a range between 1% and 5%.
Cabell cited investment strategies from companies such as Fidelity, stating that moderate BTC allocation can serve as a cautious diversification measure in a country's investment portfolio.
Poter further emphasized the importance of this initiative as a fundamental measure for the adoption of digital assets at the state level.
We have seen at least ten other states expressing interest in this, and some legislators are already in the drafting process, preparing to propose similar legislation
Poter believes that as other states observe the financial results of BTC reserve strategies, Pennsylvania's leading position may accelerate nationwide adoption.
The support of Pennsylvania Governor Josh Shapiro is crucial for the enactment of this bill.
With the support of both parties, this measure is consistent with Shapiro's forward-looking approach to economic competitiveness, indicating that Pennsylvania is ready to adopt an innovative asset strategy.
According to the Satoshi Action Fund, Shapiro's government is open to measures to promote financial resilience, especially in the current economic uncertainty.
If the bill is passed, Pennsylvania will become the first state to adopt BTC reserves and set a precedent for the state government's digital asset management.
This measure highlights the growing interest of state legislators 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.
