Ohio has joined Texas and Pennsylvania in introducing legislation to create a Bitcoin reserve, aiming to protect state finances and embrace modern asset allocation strategies.
Ohio Bitcoin Reserve Act Introduced
On December 17, Ohio House Republican leader Derek Merrin introduced HB 703, tentatively named the Ohio Bitcoin Reserve Act. The proposed legislation would grant the state treasurer the authority to purchase Bitcoin as part of the state’s asset allocation strategy. However, the bill stops short of mandating such purchases.
“The U.S. Dollar is being rapidly devalued, and our State Treasurer should have the authority and flexibility to invest in Bitcoin,” said Merrin. “Ohio must embrace technology and protect tax dollars from eroding.”
The bill arrives shortly before the close of Ohio’s 135th General Assembly, which ends on December 31, 2024. While the bill cannot be enacted in the current session, Merrin plans to reintroduce it in the upcoming 136th General Assembly beginning January 6, 2025.
A Framework for Bitcoin in State Finances
Merrin described the bill as a step toward positioning Ohio to leverage Bitcoin’s growing role in global finance. He emphasized Bitcoin’s ability to act as “sound money” and compared it to “digital property rights” for users.
“Bitcoin is revolutionizing finance and reshaping economies worldwide,” Merrin stated. “This legislation establishes a framework for Ohio’s government to harness Bitcoin’s potential and strengthen our state’s finances.”
Merrin, a self-proclaimed crypto advocate, has received an “A” rating from Coinbase’s Stand With Crypto lobbying group. He has also voiced the need for a 21st-century framework that defends individuals’ rights to own, trade, and conduct commerce with digital assets.
Ohio Follows Texas and Pennsylvania in Bitcoin Legislation
Ohio is the third U.S. state to introduce legislation advocating for Bitcoin reserves:
- Texas Strategic Bitcoin Reserve Act: On December 12, Texas Representative Giovanni Capriglione proposed a bill directing the state comptroller to hold Bitcoin as a reserve asset for at least five years.
- Pennsylvania Bitcoin Reserve Bill: On November 12, Pennsylvania Representative Mike Cabell introduced a bill permitting the state to allocate up to 10% of its treasury reserves to Bitcoin, citing its potential as a hedge during economic instability.
Both bills followed Donald Trump’s re-election in November, during which he floated the idea of a federal Bitcoin reserve.
Bitcoin as a Hedge Against Economic Uncertainty
Merrin’s proposal aligns with a broader trend of states considering Bitcoin to safeguard financial stability amid inflation and economic uncertainty. These bills reflect a growing recognition of Bitcoin as an asset capable of hedging against currency devaluation and offering long-term financial stability.
With the legislative session nearing its end, Merrin intends to push for swift reintroduction of the bill in 2025. He hopes the framework will encourage Ohio lawmakers to move quickly in adopting Bitcoin as a part of the state’s financial strategy.
