In a groundbreaking move, Pennsylvania lawmakers have introduced legislation to establish a state Bitcoin reserve, aiming to secure a portion of the state’s treasury in Bitcoin. The bill, named the Pennsylvania Bitcoin Strategic Reserve Act, would allow the state treasury to allocate up to 10% of its approximately $7 billion in assets into Bitcoin, marking a historic shift in state-level financial strategy.

Republican Pennsylvania State Representative Mike Cabell, the bill’s primary sponsor, introduced the legislation on Thursday. Cabell told FOX Business, “The Pennsylvania Bitcoin Strategic Reserve Act is a visionary step toward securing our state’s financial future. By integrating Bitcoin into our reserves, we’re not only protecting Pennsylvania from inflation’s relentless impact but also positioning our state as a leader in financial resilience and innovation.”

The bill follows a recent surge in Bitcoin’s value, which climbed over 20% last week to reach an all-time high of more than $93,000 per token after President-elect Donald Trump’s victory in the 2024 U.S. presidential election. Trump, who has expressed interest in making the U.S. a “crypto capital,” has fueled investor optimism with plans for a national Bitcoin reserve and favorable regulatory policies.

The Pennsylvania proposal is supported by advocacy from the Satoshi Action Fund (SAF), a pro-Bitcoin organization that previously assisted Pennsylvania lawmakers in crafting the “Bitcoin Rights” bill. That legislation, passed last month, safeguards residents’ rights to self-custody digital assets and use Bitcoin as a payment method. The Bitcoin Rights bill received strong bipartisan support, passing in the Democrat-led House with a 176-26 majority, and is expected to move to the Senate in the coming weeks.

Dennis Porter, founder of SAF, said the strategic reserve act is expected to receive similar bipartisan support, adding, “With public interest in Bitcoin at an all-time high, we expect both bills to be passed and signed into law next year.” SAF is also in discussions with legislators in ten other states interested in creating similar Bitcoin reserve legislation.

If passed, Pennsylvania would be the first state to directly purchase Bitcoin for its reserves. Currently, some states, like Michigan and Wisconsin, allow state pension funds to hold stakes in Bitcoin exchange-traded funds (ETFs), which provide exposure to Bitcoin without directly purchasing the asset.

The Pennsylvania Bitcoin Strategic Reserve Act’s potential passage would highlight the state’s shift toward modern investment strategies, positioning it as a leader in Bitcoin adoption at the state level. As interest in Bitcoin continues to grow, other states are likely to follow Pennsylvania’s model in integrating Bitcoin into public portfolios.

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