The new Bitcoin Rights Bill has enabled Pennsylvania to become the most recent state to enact legislation that is designed to provide regulatory clarity on digital assets.
The new Bitcoin Rights Bill has enabled Pennsylvania to become the most recent state to enact legislation to provide regulatory clarity on digital assets. Governors and state legislatures are progressively establishing regulations for the cryptocurrency industry in the United States.
This action is being taken in the context of ongoing ambiguity at the federal level regarding the regulation of crypto and the appropriate federal agencies responsible for enforcing fundamental investment rules in the $2 trillion digital asset market, which is still in the process of development.
Pennsylvania Sets the Standard for Bipartisan Bitcoin Rights Bill
The Bitcoin Rights bill, also known as House Measure 2481, has been passed by the Pennsylvania House of Representatives. It allows Bitcoin payments, clarifies the taxing of Bitcoin transactions, and establishes protections for resident rights to self-custody digital assets.
The Bitcoin Rights Bill received substantial bipartisan support, with a 176-26 vote margin. The bill received unanimous support from the 100 Republican members and was voted on by 76 Democrats.
If adopted, the Republican-controlled Pennsylvania Senate will forward the bill to Governor Josh Shapiro following the upcoming election.
The Bitcoin Rights bill was drafted by the Satoshi Action Fund, a Bitcoin advocacy group, to provide legislators with a more comprehensive understanding of the functioning of the blockchain and Bitcoin. SAF has played a critical role in developing and advancing legislation identical to 20 other states. Four have already been enacted into law: Arkansas, Louisiana, Montana, and Oklahoma.
Its primary objective is to encourage the adoption of Bitcoin at the state level and to encourage legislators to establish transparent regulations for cryptocurrency. The federal government has yet to implement this to standardize it as a transaction method.
Can Pennsylvania’s crypto bill reconcile the political divide?
Although some state statutes regarding financial instruments for small investors are contentious, federal authority over payment methods frequently supersedes state law. The federal government still needs to determine which digital currencies, besides Bitcoin and Ethereum, qualify as securities. Additionally, it is necessary to verify which items are subject to the disclosure requirements established by the Securities and Exchange Commission.
A distinct federal agency, the Commodity Futures Trading Commission, regulates cryptocurrencies as commodities with a more relaxed approach than other regulatory bodies. In a recent speech at the SIFMA annual meeting, its Chair, Behnam, it emphasized the need for Congress to address the voids in current frameworks regarding crypto regulations and election betting laws.
In this election year, cryptocurrency regulation has become a highly politicized issue. Republicans, including their presidential nominee, former President Donald Trump, advocate for more stringent rules. These should appeal to approximately 50 million Americans who believe the Biden Administration’s stringent regulatory approach has stifled innovation.
Bitcoin Voters PAC, a pro-Bitcoin Political Action Committee, recently produced a campaign advertisement for Trump in this state.
Rep. Mike Cabell, a long-time Bitcoin investor, and sponsor of the Republican bill, stated:
“In such polarizing times, it is great to see both sides of the aisle come together to further innovation and prioritize security for Pennsylvanians who own and transact with cryptocurrency.”
Pennsylvania is experiencing a surge in cryptocurrency ownership, with 1.5 million residents possessing some form of digital asset.
Lawmakers, Bridging the Divide Embrace Bitcoin Rights
Pennsylvania is the sole state with a divided legislature. This implies that no single party possesses complete control, necessitating bipartisan support for legislation to progress.
The Bitcoin Rights bill has received a solid bipartisan reception in the Democrat-led lower chamber, which has the support of Republicans. This development provides Cabell with optimism for another successful outcome.
Cabell commented:
“A bill focused on the right to financial freedom should have bipartisan support. The 26 votes against it came from members who either lack a solid understanding of blockchain technology or have concerns about Bitcoin’s environmental impact.”
