Pennsylvania House passes ‘Bitcoin Rights’ bill for digital asset clarity

The Pennsylvania bill advances digital asset rights and taxation strategies, setting potential precedent amidst federal uncertainty.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

The Pennsylvania House of Representatives passed a bipartisan bill on Oct. 24 aimed at providing regulatory clarity for digital assets, marking a significant development in state-level efforts to address crypto regulation.

The legislation — House Bill 2481, also known as the “Bitcoin Rights” bill — seeks to protect residents’ rights to hold and use Bitcoin while establishing clear guidelines on taxing digital asset transactions.

Bipartisan support

The bill passed with overwhelming support, securing a 176-26 vote, including backing from both Democrats and Republicans. The legislation ensures that Pennsylvanians can self-custody digital assets, allowing them to securely store and use bitcoin for payments, as well as providing clarity on how these transactions will be taxed.

The bill now moves to the Republican-controlled Pennsylvania Senate, where it is expected to be taken up after the November elections. If passed, it will proceed to Governor Josh Shapiro for his approval.  If enacted, Pennsylvania would join other states that are developing their own rules for digital assets amid ongoing federal uncertainty about 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 surged. An estimated 1.5 million residents — roughly 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 how to manage digital assets, states like Pennsylvania are stepping in to provide guidance. The Pennsylvania bill is designed to fill regulatory gaps and provide a legal framework for digital asset transactions.

Potential impact on elections

The bill’s timing is significant, as Pennsylvania remains a critical battleground in the 2024 presidential election. With both major political parties seeking to win over digital asset owners, the new legislation could have implications for upcoming state and national elections.

Crypto-friendly policies may influence tight races, including the Senate contest 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 set an example for other states as they navigate the complexities of crypto regulation. The bipartisan support in the House indicates a growing understanding of the need for clear, state-level digital asset policies in the absence of federal action. The bill now faces its final hurdles as it awaits consideration in the state Senate.