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Exclusive: Pennsylvania has become the latest state to pass a bill establishing some regulatory clarity regarding digital assets, continuing a trend of legislatures and governors across the country attempting to provide rules of the road for the U.S. securities industry. cryptography, FOX Business has learned.
The move comes amid continued confusion at the federal level over crypto regulation and whether federal agencies should take the lead in enforcing basic investment rules in the still-nascent digital asset market. 2 trillion dollars.
The Pennsylvania House of Representatives on Wednesday passed a bill that protects residents’ rights to self-custody their digital assets, guarantees their ability to use Bitcoin as a means of payment, and provides explicit guidelines on taxing Bitcoin transactions. House Bill 2481, dubbed the Bitcoin Rights Bill, passed with strong bipartisan support, winning by an overwhelming majority of 176 to 26. The vote included 76 Democrats and unanimous support from all 100 Republican members.
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The bill will move to the Republican-led Pennsylvania Senate after the election and, if passed, to Gov. Josh Shapiro’s desk.
Pennsylvania Governor Josh Shapiro during an interview at the State Capitol building in Harrisburg, Pennsylvania on February 28, 2024. (Photographer: Rachel Wisniewski/Bloomberg via Getty Images / Getty Images)
The bill, developed by outside bitcoin advocacy group Satoshi Action Fund (SAF), is the latest effort to help lawmakers understand the nuances of blockchain technology and bitcoin. SAF successfully helped draft and pass similar legislation in 20 other states, with four bills becoming law in Oklahoma, Louisiana, Montana and Arkansas. The group’s main priority is to help bring Bitcoin into the mainstream at the state level and encourage state lawmakers to do what the federal government has yet to do: establish clear rules for crypto and standardize it in as a mode of transaction.
Some state laws regarding financial products sold to small investors can be controversial; federal jurisdiction over payment methods often trumps state law. Meanwhile, the federal government has yet to define which digital assets, aside from Bitcoin and Ethereum, are securities like stocks or bonds, and fall under the disclosure rules imposed by the Securities and Exchange Commission.
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The seal of the United States Securities and Exchange Commission (SEC) is seen at its headquarters in Washington, DC, May 12, 2021. (Reuters/Andrew Kelly/File photo / Reuters)
A separate federal agency, the Commodity Futures Trading Commission, oversees crypto which is considered a commodity with a lighter regulatory touch. Crypto regulation has become a major political issue in an election year where Republicans and the party’s presidential nominee, former President Donald Trump, are pushing for fewer rules to curry favor of some 50 million Americans who believe the Biden administration’s heavy regulatory hand has hampered innovation.
“In these polarized times, it’s great to see both sides of the aisle coming together to promote innovation and prioritize the safety of Pennsylvanians who own and transact with cryptocurrencies,” said Republican Pennsylvania state Rep. Mike Cabell, the bill’s sponsor and longtime bitcoin advocate. investor, told FOX Business.
Crypto ownership in Pennsylvania has also accelerated, with 1.5 million residents owning some form of digital asset, or about 12% of the 13 million people who reside there.
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The state’s role as one of the most important battlegrounds in the upcoming presidential election has made it a target of fervent political spending by the US crypto industry, seeking to influence votes in favor of the candidates who will defend them. With just two weeks until Election Day, those 1.5 million crypto owners could make a big difference in tight races like the Senate battle between incumbent Democratic Sen. Bob Casey and his challenger, Republican Dave McCormick. businessman and Bitcoin advocate.
The race for the White House between Trump and Vice President Kamala Harris in Pennsylvania is also heating up, with both candidates now neck and neck in the polls.
Chester Spatt, a professor at Carnegie Mellon University and former SEC chief economist, details the economists’ “wish” lists of the 2024 presidential candidates. (Fox News/Getty Images/Fox News)
“Pennsylvania is the most important battleground state in the presidential race, and the outcome could depend on a small handful of voters,” said Dennis Porter, founder of the Satoshi Action Fund, which played a key role in the development of the Bitcoin rights bill. “With the bill already passed by the Pennsylvania House and poised to pass the Senate, it is a critical issue for candidates and voters. Additionally, Bitcoin voting represents a new bloc of voters in growing actively seeking a political home.”
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Pennsylvania is currently the only state with a divided legislature, meaning no party has complete dominance, and bills still need bipartisan support to pass. The bill’s bipartisan reception in the Democratic-led lower chamber, combined with resounding support from Republicans, is encouraging for Cabell, who is hoping for another Senate victory.
“A bill focused on the right to financial freedom should be bipartisan,” Cabell said. “The 26 ‘no’s’ came from members with less knowledge of blockchain technology and others concerned about the effects of bitcoin on the environment.”
