Ohio State Pioneers Bitcoin Investment with New Legislation
On December 17, 2024, Ohio State Representative Derek Merrin from Monclova Township unveiled groundbreaking legislative action. Dubbed the “Ohio Bitcoin Reserve Act” or House Bill 703, this proposal empowers the state treasury to consider Bitcoin as part of its asset arsenal. By establishing a specific Bitcoin fund, the bill lays the legal groundwork for the State Treasurer to acquire and maintain Bitcoin, introducing a new dimension to Ohio’s financial strategy.
Ohio Envisions Strategic Bitcoin Reserve
In a public statement shared on the social media platform X, formerly known as Twitter, Merrin articulated, “Today marks the introduction of HB 703, a bill to create the Ohio Bitcoin Reserve within the state treasury! This initiative grants our State Treasurer the authority and adaptability to invest in Bitcoin. As the US dollar faces devaluation, Bitcoin emerges as a robust tool to diversify and protect our state’s financial portfolio from depreciating value.”
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The press release from Merrin’s office underscores the legislation’s core objectives: safeguarding Ohio’s assets amidst the dollar’s declining value and embracing cutting-edge technology to shield tax dollars from potential depreciation. Merrin insists, “Our State Treasurer should possess the authority to include Bitcoin in the asset allocation strategy to effectively protect public funds.”
National and State Trends Toward Bitcoin Reserves
Merrin’s statement anticipates that the upcoming federal administration, led by President-elect Donald Trump, might also explore the establishment of a national Bitcoin reserve. This aligns with previous suggestions by figures such as Senator Cynthia Lummis from Wyoming. Similar legislative developments are being observed in states like Texas and Pennsylvania, suggesting a rising inclination towards Bitcoin as a strategic reserve asset on both state and national fronts.
“Bitcoin is a revolutionary force in the financial sector, reshaping global economies. It represents a form of digital property rights accessible to everyone. This legislation enables Ohio’s state government to leverage the transformative potential of Bitcoin,” Merrin emphasized in his communication.
Support from the Ohio Blockchain Council
Andrew Burchwell, Executive Director of the Ohio Blockchain Council, expressed his endorsement of the initiative: “Governments globally, including the US, Texas, Pennsylvania, and Florida, are contemplating Bitcoin as a strategic asset. Representative Merrin’s introduction of this legislation is a commendable step towards positioning Ohio at the forefront of innovation and technological advancement. I am keen to collaborate with the legislature in 2025 to optimize this opportunity for Ohio.”
Legislative Timeline and Future Prospects
House Bill 703’s introduction coincides with the conclusion of the 135th General Assembly, which is set to adjourn on December 31, 2024. Given the current session’s imminent end, the bill will likely serve as a precursor for discussion in the subsequent legislative session starting January 6, 2025. Ohio law mandates that bills not enacted by session’s end must be reintroduced in the next term.
Ohio’s Position in the National Bitcoin Reserve Landscape
With the potential enactment of this bill, Ohio is on track to become the third US state to formally establish a Strategic Bitcoin Reserve, following the lead of Texas and Pennsylvania. Pennsylvania’s recent legislation allows for up to 10% of its General Fund to be allocated to Bitcoin, while Texas has taken a more gradual approach, enabling Bitcoin to be held for a minimum duration in the context of donations and taxes.
Florida is also preparing to launch its own Strategic Bitcoin Reserve in early 2025, supported by the proactive stance of the Florida Blockchain Business Association. Meanwhile, states such as Michigan and Wisconsin have opted for a more conservative strategy, focusing on Bitcoin-related ETFs and trusts. Notably, the Wisconsin Investment Board recently became the first state pension fund to invest in Bitcoin ETFs.
At the time of reporting, Bitcoin stood at a trading value of $103,987.
