Bitcoin national reserve legislation proposed for the first time

Author: FOX Business; Source: Carbon Chain Value

On November 15, FOX Business exclusively learned that President-elect Donald Trump's proposal to establish a national Bitcoin reserve is gaining support nationwide, and several states are currently considering plans to implement their own cryptocurrency reserves.

According to ZeroHedge, as early as May of this year, when Trump's cryptocurrency stance was still unclear, they took the lead in proposing a modest suggestion: not only to win cryptocurrency votes, but also to ensure that the U.S. cryptocurrency industry has experienced a disastrous four years under the suffocating anti-cryptocurrency regime of Gary Gensler and Liz Warren. Trump should announce the establishment of a strategic Bitcoin/Ethereum reserve and allocate a certain amount to it (we recommend 2 million Bitcoin/10 million Ethereum).

Two months later, at the Bitcoin 2024 conference in Nashville, many expected Trump to make the announcement, but despite coming very close to a commitment during his lengthy pro-crypto speech, the former and future president refused to make a firm commitment, although some saw it as just a delay until the pro-crypto president returned to the White House.

Fast forward to November 15, and in a preview of what’s to come at the federal level, Fox Business reported that Trump’s imminent return to the White House has prompted Pennsylvania lawmakers to introduce legislation that would allow the state’s treasury to hold the world’s largest digital asset on its balance sheet, part of a broader movement to view Bitcoin as a store of value.

The new bill, titled the Pennsylvania Bitcoin Strategic Reserve Act, was introduced in the Pennsylvania House of Representatives on Thursday and is the first of its kind, and would allow the state’s treasury to allocate 10% of its approximately $7 billion in state funds to Bitcoin to help fight inflation and diversify its investments beyond traditional assets like bonds and cash reserves.

The Pennsylvania Bitcoin Strategic Reserve Act is a visionary step to ensure the financial security of our state’s future,” the bill’s sponsor, Republican Rep. Mike Cabell of Pennsylvania, told FOX Business. “By adding Bitcoin to our reserves, we are not only protecting Pennsylvania from the crippling effects of inflation, but also making our state a leader in financial resilience and innovation.”

The legislation comes as pro-cryptocurrency senators say they hope to push for Bitcoin Reserve bills across the country within President Trump’s first 100 days in office.

The strategic reserve bill is the second cryptocurrency-related legislation to be introduced in the state legislature this year. Last month, the state House of Representatives passed a bill that would protect residents’ self-custody rights over digital assets and ensure they can use Bitcoin as a form of payment. FOX Business reported on the Bitcoin Bill of Rights, which will be sent to the Republican-led Senate in the coming weeks and, if passed, to Governor Josh Shapiro for his signature.

According to Fox Business, the advocacy group Satoshi Action Fund, which helped Pennsylvania lawmakers draft a Bitcoin Bill of Rights, is also behind the new Strategic Reserve Act. The organization's main goal is to help Bitcoin become mainstream at the state level, and to date, the organization has successfully helped 21 states draft and pass Bitcoin-related legislation. Its founder, Dennis Porter, hopes that the strong bipartisan support for the October Bill of Rights will serve as a bellwether for the acceptance of the Strategic Reserve Act.

Porter said, "The Bitcoin Rights Act passed the Democratic-led House of Representatives with a majority of 176 to 26, and with public support and interest in Bitcoin at an all-time high, we expect both bills to pass and are expected to be signed into law next year."

Porter said the Strategic Reserve Act is expected to serve as a model for other states to integrate digital assets into their investment portfolios, and said the Satoshi Action Fund is currently in talks with 10 other states to implement similar legislation to implement a similar legislative process.

If the bill is passed into law, Pennsylvania will become the first state to directly hold Bitcoin on its balance sheet, marking the first step in digital assets playing a larger role in the state government's economic strategy.

"This legislation sends a clear message: Pennsylvania is ready to take bold, modern solutions to safeguard economic prosperity for generations to come," said Rep. Mike Cabell, R-Pa.

"Amid optimism surrounding Trump's promise to make the U.S. the "crypto capital of the world" and Bitcoin a "permanent national asset," Bitcoin prices have surged 20% in the week since Trump's victory, reaching an all-time high of more than $93,000 per coin and a market capitalization of more than $1.8 trillion. That makes Bitcoin the world's seventh-largest asset behind gold and five U.S. tech giants including Nvidia, Apple, Microsoft, Amazon and Google.

Ahead of the growing likelihood that the U.S. will officially buy the cryptocurrency for the U.S. Treasury, Bitcoin's surge has fueled speculation that other countries are doing the same, hoping to get their hands on the scarce asset before Uncle Sam steps in to buy it.