The Satoshi Action Fund, led by CEO Dennis Porter, recently announced the public release of its Strategic Bitcoin Reserve Policy Model. The announcement was made on social media and the model is now available for general download. This follows the Pennsylvania House of Representatives’ recent passing of the “Bitcoin Bill”, which was drafted by the Bitcoin advocacy group, Satoshi Action Fund. This latest move signifies a concentrated effort to aid lawmakers in comprehending the intricacies of blockchain technology and Bitcoin.
The Bitcoin Strategic Reserve Policy Model is engineered to guide states in responsibly and securely integrating Bitcoin into their reserves. This policy model is centered around four key features:
1. Inflation Mitigation: The model recognizes Bitcoin as a safeguard against inflation, emphasizing its increasing value and acceptance by sovereign nations and financial giants like BlackRock and Fidelity.
2. Investment Flexibility: State treasurers are given the authority to designate up to 10% of certain public funds, including general and stabilization funds, for Bitcoin investments.
3. Secure Custody Requirements: The model also enforces strict guidelines for holding digital assets through secure custody solutions or qualified custodians, effectively minimizing risks and enforcing robust governance structures.
4. Legislative Intent: The policy underlines the importance of protecting state funds against inflation while boosting economic security and maintaining the flexibility to adapt to emerging financial opportunities.
The model also tackles operational aspects such as the utilization of Bitcoin in tax payments and the potential for state retirement funds to invest in exchange-traded products backed by digital assets.
Eric Peterson, Policy Director at Satoshi Action Fund, clarified, “States have different funds, so this is up to lawmakers to make judgment decisions.” According to the draft, the State Treasurer is allowed to invest up to 10% of public funds in Bitcoin. However, these digital assets must be securely held either directly by the state using a Secure Custody Solution, through a Qualified Custodian, or as exchange-traded products from registered investment companies.
The model concludes with a statement that any taxes or fees paid to the state in Bitcoin are to be transferred to the state’s general fund, which will then reimburse the qualifying digital asset fund with United States currency.
By releasing this policy model, the Satoshi Action Fund is taking proactive steps to integrate Bitcoin into public finance systems across the United States. This is particularly significant as discussions around establishing a Bitcoin National Reserve are gaining momentum under the current Trump administration. This move by the Satoshi Action Fund underscores the rising prominence of Bitcoin and the urgency for lawmakers to understand and regulate this burgeoning asset class.
