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Bill

HB 2664

An Act amending Title 75 (Vehicles) of the Pennsylvania Consolidated Statutes, in general provisions relating to vehicles, further providing for definitions; and, in general provisions relating to operation of vehicles, further providing for drivers of emergency vehicles.

2025-2026 Regular Session Introduced by Jill Cooper and 2 co-sponsors

PA would allow limited investment of certain state funds and retirement funds in digital assets (Bitcoin) or approved ETPs, capped at 10% per fund.

Referred to Transportation
0
WeVote Research Nonpartisan
Bill Summary · HB 2664

Purpose and overarching goal

  • HB 2664, introduced in the 2023-2024 Pennsylvania House session, would authorize limited investment of certain state funds in Bitcoin and other digital assets and would allow state retirement systems to invest in approved exchange-traded products (ETPs). The bill frames Bitcoin and digital assets as potential reserve assets to counter inflation and preserve purchasing power of public funds.
  • The operative approach is permissive (authorizing but not mandating investments). The State Treasurer and state retirement systems would have optional authority to invest, rather than an obligation to do so.

Key provisions and changes proposed

  • Treasury investment authority
    • Permit the State Treasurer to invest unexpended, unencumbered, or uncommitted funds from specified state accounts (including General Fund, Budget Stabilization Reserve Fund, and other Treasurer-managed funds) in Bitcoin or digital assets.
    • Annual investment cap: investments from any “covered fund” would be limited to 10% of the fund’s balance at the time of investment (applies fund-by-fund, not as a single statewide cap).
    • Holding structures: assets could be held either via direct custody (secure custody with a qualified custodian) or exposure through an exchange-traded product (ETP) issued by a PA-registered investment company.
    • Custody standards: qualified custodians would include certain banks, trust companies, special purpose depository institutions, and Commonwealth-regulated custodial firms.
    • Digital asset lending: the Treasurer could lend Bitcoin or other digital assets if such lending does not increase financial risk to the Commonwealth, with regulations to be issued to govern the lending authority.
  • Retirement system ETP investments
    • State retirement systems (e.g., State Employees’ Retirement System, Public School Employees’ Retirement System, and others) could invest unexpended, unencumbered, or uncommitted retirement funds in approved exchange-traded products (ETPs).
    • The bill does not authorize direct Bitcoin custody by retirement systems; instead, it allows exposure through ETPs.
  • General framework and limitations
    • Purpose is to provide a statutory framework for investing in digital assets and related products, with safeguards such as the 10% cap and regulated custody/ETP structures.
    • The act would be triggered only if enacted; otherwise, no change to current statutory authority.

Who would be affected

  • State government
    • Pennsylvania State Treasurer: would gain authority to invest designated funds in Bitcoin or digital assets, subject to custody and lending rules.
  • State retirement systems
    • State Employees’ Retirement System, Public School Employees’ Retirement System, and other state retirement funds: would gain authority to invest in approved ETPs containing digital assets.
  • Financial institutions and service providers
    • Qualified custodians (banks, trust companies, SPDI, and Commonwealth-regulated custodial entities) would participate in secure custody arrangements.
    • Investment companies authorized to issue PA-registered ETPs containing digital assets.

Status, timeline, and procedural notes

  • Introduction and referral
    • Introduced: November 19, 2024 by Rep. Mike Cabell, with Rep. Aaron Kaufer as co-sponsor.
    • Referred to the House Finance Committee on the same day.
  • Legislative status
    • The bill did not advance to enactment during the 2023-2024 session and was considered expired after the session ended.
    • The summary notes that the bill text would have taken effect 60 days after enactment; as enacted status is not achieved, no effect date applies.
  • Relevant context
    • The bill is categorized as expired and not enacted.
    • A later 2025 co-sponsorship memo described a related, narrower concept (potential 5% reserve allocation), but this is not identical to HB 2664’s 10% cap.

Potential impact and considerations

  • Fiscal and risk considerations
    • Introducing a 10% cap per fund aims to limit risk exposure while allowing exposure to digital assets as a hedging or diversification tool.
    • Direct custody vs. ETP exposure provides governance and risk management options.
    • Digital asset lending would require regulatory safeguards to ensure no net increase in Commonwealth financial risk.
  • Market and policy implications
    • If enacted, the proposal would mark a notable expansion of public fund investment authority into digital assets, shaping how public funds respond to inflation and market volatility.
  • Implementation considerations
    • Regulatory framework would be needed for lending and custody operations.
    • Ongoing oversight by the Treasury and applicable retirement boards to monitor investments and compliance with the 10% cap.

Note: This bill did not become law in the 2023-2024 session and has not been enacted as of the provided status.

Compiled from official sources — confirm details with the bill’s official record.

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