Lawmaker Proposes Bitcoin as Inflation Hedge
Pennsylvania lawmakers are making headlines with a bold proposal: to allow the state’s treasury to allocate up to 10% of its funds to Bitcoin. The legislation, introduced by Republican Representative Mike Cabell, aims to position the state as a leader in leveraging digital assets to combat inflation and economic uncertainty. Cabell outlined his vision in a Nov. 12 memo, emphasizing Bitcoin’s potential to act as a financial hedge, citing its growing adoption by major investment firms such as BlackRock and Fidelity.
The bill, known as HB 2664, would enable Pennsylvania’s Treasurer to invest a portion of the State General Fund, Rainy Day Fund, and State Investment Fund into Bitcoin. Combined, these funds total more than $16.7 billion, indicating a potential multibillion-dollar Bitcoin reserve if the full 10% threshold is utilized.
Cabell’s proposal is part of a broader strategy modeled after the Satoshi Action Fund’s framework, which advocates for increased Bitcoin adoption at the state level. Representative Aaron Kaufer has signed on as a co-sponsor, underscoring bipartisan support for the initiative. However, the bill’s passage remains uncertain as it navigates the legislative process.
The proposal arrives on the heels of Pennsylvania’s recent legislative activity in the crypto space. Last month, the state’s House passed HB 2481, dubbed the “Bitcoin Rights” bill, establishing regulatory safeguards for self-custody and crypto transactions.
Both bills reflect a growing trend among U.S. lawmakers, particularly within the Republican Party, to integrate Bitcoin into state and national financial strategies. Republican Senator Cynthia Lummis, who will be part of the Senate’s majority in 2025, has expressed similar ambitions, advocating for a federal strategic Bitcoin reserve.
As the debate unfolds, Pennsylvania could emerge as a pioneer in state-level Bitcoin investment, positioning itself at the forefront of a financial revolution driven by digital assets. Whether the legislation garners enough support to become law will signal the state’s commitment to exploring innovative tools to fortify its financial resilience amidst economic volatility.
This article has been refined and enhanced by ChatGPT.
