The Pennsylvania House of Representatives passed a bipartisan bill on October 24 aimed at providing regulatory clarity for digital assets, marking an important development in state-level efforts to address crypto regulation.
The legislation – House Bill 2481, also known as the “Bitcoin Rights” bill – aims to protect residents’ rights to own and use Bitcoin while establishing clear guidelines for taxing digital asset transactions.
Bipartisan support
The bill passed with overwhelming support, receiving a vote of 176 to 26, including support from both Democrats and Republicans. The legislation will allow Pennsylvanians to own digital assets, allowing them to securely store and use bitcoin for payments, and provide clarity on how these transactions will be taxed.
The bill now heads to the Republican-controlled Pennsylvania Senate, where it is expected to pass after the November elections. If passed, it would go before Governor Josh Shapiro for approval. If passed, Pennsylvania would join other states developing their own rules for digital assets amid ongoing federal uncertainty over crypto regulation.
The bill was developed with the support of advocacy groups focused on mainstreaming Bitcoin and other digital assets at the state level. Pennsylvania has become a key battleground for such efforts as the number of digital asset owners has soared. An estimated 1.5 million residents – about 12% of the state’s population – now own some form of cryptocurrency.
As federal regulators such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) continue to debate digital asset management, states like Pennsylvania are stepping in to provide guidance. The Pennsylvania bill aims to fill regulatory gaps and provide a legal framework for digital asset transactions.
Potential impact on elections
The timing of the bill is important as Pennsylvania remains a crucial battleground in the 2024 presidential election. With both major political parties trying to win over digital asset owners, the new legislation could impact upcoming state and national elections.
Crypto-friendly policies could impact tight races, including the Senate battle between incumbent Senator Bob Casey and Republican challenger Dave McCormick, as well as the presidential race between Donald Trump and Kamala Harris.
Pennsylvania’s approach could be an example for other states navigating the complexities of crypto regulation. The bipartisan support in the House of Representatives signals a growing understanding of the need for clear digital asset policies at the state level in the absence of federal action. The bill now faces its final hurdles as it awaits consideration in the Senate.