Multiple states consider implementing Crypto Assets reserve plans, Bitcoin price hits an all-time high

Recently, a proposal to establish a national Bitcoin reserve has gained widespread support across the country. Currently, several states are considering implementing their own Crypto Assets reserve plans.

In May of this year, a suggestion was made: to win the Crypto Assets votes and revitalize the American Crypto Assets industry, a strategic Bitcoin and Ethereum reserve should be established. This idea has further developed in recent months.

On November 15, Pennsylvania lawmakers introduced the Pennsylvania Bitcoin Strategic Reserve Act. This is the first of its kind that will allow the state's treasury to allocate 10% of its approximately $7 billion in state funds to Bitcoin to combat inflation and diversify investments.

The bill's sponsor, Pennsylvania Republican Congressman Mike Cabell, stated: "This is a visionary move to ensure our state's financial security in the future. By incorporating Bitcoin into our reserves, we not only protect Pennsylvania from the severe impacts of inflation, but also position our state as a leader in financial resilience and innovation."

It is worth noting that this strategic reserve bill is the second piece of legislation related to crypto assets submitted to the state legislature this year. Last month, the state House of Representatives passed a bill that protects residents' right to self-custody of digital assets and ensures that they can use Bitcoin as a means of payment.

An advocacy organization called the Satoshi Action Fund played a significant role in the drafting process of these two bills. The organization's main goal is to help Bitcoin become mainstream at the state level, and so far, it has successfully assisted 21 states in drafting and passing Bitcoin-related legislation.

The founder of the organization stated that negotiations are currently underway with 10 other states to implement similar legislation. If the bill in Pennsylvania is passed into law, it will become the first state to directly hold Bitcoin on its balance sheet, marking a significant first step in the greater role of digital assets in state government economic strategies.

Meanwhile, the price of Bitcoin has soared 20% in the past week, reaching a historic high of over $93,000 per coin, with a market capitalization exceeding $1.8 trillion. This has made Bitcoin the seventh largest asset globally, trailing only gold and five major U.S. tech giants including Nvidia, Apple, Microsoft, Amazon, and Google.

This price surge has sparked speculation that other countries may also be considering purchasing Bitcoin in hopes of acquiring this scarce asset before any potential actions are taken by the United States. As Crypto Assets gain more attention and support at both national and state levels, we may see the introduction of more relevant policies and regulations, which will have a profound impact on the Crypto Assets market.