Pennsylvania Proposes Bill to Allocate 10% of State Treasury Funds to Bitcoin, Leading U.S. Crypto Adoption Efforts

Pennsylvania lawmakers just introduced an important bill that could allow the state to hold Bitcoin as part of its financial strategy.

The Pennsylvania Bitcoin Strategic Reserve Act suggests putting up to 10% of the state’s $7 billion treasury funds into Bitcoin. This move aims to protect against inflation and diversify investments beyond traditional options like bonds and cash reserves.

This bill makes Pennsylvania the first state to pursue direct Bitcoin acquisition. Other states, like Michigan and Wisconsin, are taking a more cautious route. They’re allowing pension funds to invest in Bitcoin exchange-traded funds instead.

This development comes at a time when President-elect Trump is focusing on cryptocurrency adoption. His incoming administration plans to create a national Bitcoin reserve within the first 100 days. Trump aims to position the U.S. as a global leader in the crypto industry. Throughout his campaign, he promised to introduce friendlier regulations for this sector.

“By integrating Bitcoin into our reserves, we’re not just protecting Pennsylvania from inflation. We’re also positioning our state as a leader in financial resilience and innovation,” said Pennsylvania Republican representative Mike Cabell.

The Pennsylvania Strategic Reserve Act is the second piece of crypto legislation being considered this year. Back in October, the state passed a groundbreaking bill to protect residents’ rights to use Bitcoin as a payment method and maintain self-custody of the asset.

Even before taking office in January, Trump is making significant moves in favor of crypto. His transition team is looking at three pro-crypto candidates to replace the current SEC chair, Gary Gensler.

Additionally, he’s considering Republican Scott Bessent for the role of U.S. Treasury Secretary. Trump’s campaign promises have struck a chord with the crypto community. His administration is expected to focus on initiatives that strengthen the country’s status as a crypto capital, while also exploring the benefits of holding Bitcoin at both state and federal levels.