Pennsylvania House Passes Crypto Protection Bill In Bipartisan Vote #CriptoNews

The Pennsylvania House of Representatives passed a bill protecting residents’ rights to use and store cryptocurrency on October 22, 2024. The Digital Assets Authorization Act secured an overwhelming majority of 176-26 votes, backed by all 100 Republican members and 76 Democrats, according to the official Pennsylvania General Assembly voting record.

The strong bipartisan support for the bill reflects a broader trend in U.S. politics, where cryptocurrency regulation represents a rare unifying issue. Among crypto owners, 35% identify as Democrats, 33% as Republicans and 32% as independents or other according to a Grayscale report.

However, the House’s voting pattern shows that some resistance remains among Democrats, with 26 voting against the bill while Republicans showed unanimous support.

Voters are paying close attention to crypto policy, with 51% of crypto-positive voters monitoring candidates’ positions, while 48% of all voters express distrust towards politicians who interfere with crypto development, rising to 63% among crypto-positive voters, according to a recent DCG and Harris Poll survey of swing states, including Pennsylvania. “This data shows crypto is top of mind for voters in swing Senate states and that a pro-crypto position is a net positive for policymakers and candidates,” said Julie Stitzel, Senior Vice President of Policy at DCG in a press release statement.

Bill Specifics And Enforcement Plan

If enacted, this crypto legislation would establish clear protections for digital asset usage and custody rights across Pennsylvania, while maintaining existing regulatory frameworks.

The legislation clearly defines digital assets as decentralized virtual currencies, cryptocurrencies and native electronic assets, including stablecoins and NFTs. Notably, it explicitly excludes central bank digital currencies and other government-controlled digital assets from its scope.

Under the proposed law, state and local governments would be prohibited from restricting individuals and businesses from accepting digital assets as payment for legal goods and services. The bill also protects the right to self-custody digital assets using hardware or self-hosted wallets, ensuring users maintain independent control over their assets.

The tax provisions of the bill ensure that digital assets won’t face discriminatory treatment. While standard taxes will apply to transactions using digital assets just as they do with U.S. dollar transactions, the legislation prohibits any additional taxes, withholdings or charges based solely on the use of digital assets as a payment method.

According to the fiscal note released by the House Appropriations Committee on October 23, the implementation of this legislation would have no impact on commonwealth funds, as it primarily focuses on establishing regulatory frameworks rather than creating new government programs or requirements.

If enacted, the law would take effect after a 60-day implementation period, giving businesses and government entities time to adjust to the new regulatory framework.The bill maintains existing regulatory requirements for virtual currency businesses and fraud protection measures, ensuring consumer protection remains a priority.

Pennsylvania’s Digital Assets Authorization Act follows Louisiana’s recent crypto-friendly legislation and its first U.S. state to accept cryptocurrency for government services in September 2024, reflecting a growing trend of state-level initiatives to embrace digital assets.