Ohio Congressman Introduces Bitcoin Strategic Reserve Bill
Ohio State Representative Derek Merrin has introduced a groundbreaking bill, House Bill 703, also known as the Ohio Bitcoin Reserve Act, aimed at positioning Ohio as a leader in cryptocurrency innovation. The bill, filed on December 17, 2024, seeks to establish a state Bitcoin fund within the state Treasury, granting the State Treasurer the authority to purchase and hold Bitcoin as part of Ohio’s asset management strategy.
Key Provisions of the Ohio Bitcoin Reserve Act
- Creates a dedicated Bitcoin fund within the state treasury
- Grants the State Treasurer the discretion to invest in Bitcoin as part of asset allocation
- Does not mandate specific Bitcoin investments or portfolio allocations
- Amends section 2981.12 and enacts section 135.146 of Ohio's Revised Code to pave the way for Bitcoin adoption
Merrin states the purpose behind the bill is to protect Ohio's tax dollars from erosion due to the rapidly devaluing US dollar. He believes that Bitcoin can serve as a hedge against inflation and a means to preserve the value of state reserves. The bill's introduction comes at a time when the US is experiencing economic uncertainty, and the value of the dollar is under pressure.
Ohio is not alone in its pursuit of a Bitcoin reserve. Pennsylvania and Texas have introduced similar legislation in recent weeks. Here's a comparison of the three bills:
- Pennsylvania Bitcoin Strategic Reserve Act: Introduced by Representative Mike Cabell, this bill proposes allocating up to 10% of the state's treasury reserves to Bitcoin.
- Texas Strategic Bitcoin Reserve Act: Filed by Representative Giovanni Capriglione, this bill aims to create a state-funded Bitcoin reserve and authorize state agencies to accept Bitcoin for payments.
- Ohio Bitcoin Reserve Act: While similar in intent, the Ohio bill does not mandate specific Bitcoin investments or portfolio allocations, giving the State Treasurer more flexibility in asset management.
The introduction of these bills reflects a growing trend of states exploring Bitcoin as a strategic reserve asset. With the incoming Trump administration expected to consider a federal Bitcoin reserve, Ohio's move positions the state as a leader in cryptocurrency innovation.
What's Next for the Ohio Bitcoin Reserve Act?
The bill's introduction comes just two weeks before the end of the 135th General Assembly, scheduled to adjourn on December 31, 2024. As the current session is nearing its close, the proposal will likely serve as a framework for the next legislative session, which begins on January 6, 2025. Merrin hopes that the bill will "pave the way for legislators to address it quickly next year" and make Ohio a pioneer in Bitcoin investment.