Pennsylvania has taken a significant leap forward in the world of cryptocurrency, with the state’s House of Representatives approving a bill that sets clear regulatory guidelines for digital assets. The Digital Assets Authorization Act, popularly known as the ‘Bitcoin Rights’ bill, was passed with strong bipartisan support, receiving 176 votes in favor and only 26 against.
This landmark legislation, drafted by the Bitcoin advocacy group Satoshi Action Fund, represents a significant step towards protecting the rights of cryptocurrency holders in the state. The bill guarantees the right to self-custody of digital assets like Bitcoin and stablecoins, allowing individuals to hold and control their own cryptocurrencies. It also paves the way for using these assets for payments and exempts them from additional taxation.
Pennsylvania’s move closely follows Oklahoma, which earlier this year became the first US state to declare self-custody of Bitcoin and other cryptocurrencies a fundamental right. Louisiana, too, has passed the Blockchain Basics Act, aiming to protect digital asset owners and miners while prohibiting the future use of Central Bank Digital Currencies (CBDC).
The passage of this bill in Pennsylvania holds significant implications for the future of cryptocurrency regulation in the United States. As a key swing state, Pennsylvania’s actions carry weight and could serve as a catalyst for broader, nationwide adoption of pro-crypto legislation. It’s noteworthy that both major political parties are showing increasing support for the cryptocurrency industry. Brian Armstrong, CEO of Coinbase, publicly endorsed David McCormick, the GOP nominee for the Pennsylvania senate seat, due to McCormick’s favorable stance on cryptocurrency. Similarly, Democratic Sen. Bob Casey Jr. voiced his support for a resolution against an anti-cryptocurrency directive by the SEC earlier this year.
The growing support for crypto legislation across states indicates a shift in the political landscape. While the bill still needs the approval of the Pennsylvania Senate and the signature of Governor Josh Shapiro to become law, its passage through the House of Representatives is a strong indication of the increasing acceptance of cryptocurrencies as legitimate financial instruments.