Ohio has become the third U.S. state, following Texas and Pennsylvania, to consider legislation allowing Bitcoin reserves as part of its state treasury.
Tentatively dubbed the Ohio Bitcoin Reserve Act, Ohio House Republican leader Derek Merrin presented HB 703 on December 17. Though it would not force such purchases, the proposed legislation would allow the state treasurer to purchase Bitcoin (BTC) as part of “proper asset allocation.”
“Our State Treasurer should have the authority and flexibility to invest in Bitcoin when deciding appropriate asset allocation; the U.S. Dollar is fast devalued.” Merrin said. “Ohio has to welcome technology and guard tax money from eroding.”
Arriving barely two weeks before the end of the 135th General Assembly, slated to adjourn on December 31, Merrin pointed out that the law will form the basis for Ohio’s next legislative session. Any bills not passed by the conclusion of the session die and have to be brought back before next assemblies.
Reintroduced during the 136th General Assembly, scheduled for January 6, 2025, the Ohio Bitcoin Reserve Act will run for two years. Merrin hoped that the foundation this idea built would allow quick legislative action going forward.
“Bitcoin is changing world economies and transforming finance,” Merrin said. We need sound money; Bitcoin gives everyone who holds it digital property rights. This legislation provides a structure for Ohio’s state government to make use of Bitcoin and fortify our state finances.
Vocal supporter of cryptocurrencies Merrin has regularly defended digital asset rights. Stand With Crypto, a Coinbase-supported advocacy group, rates him “A.” Merrin underlined in a LinkedIn article dated August 5 the need of a “21st-century framework” to protect people’s rights to own, trade, and interact with digital assets.
Ohio follows Pennsylvania and Texas, which have proposed similar Bitcoin reserve laws. Texas House Representative Giovanni Capriglione put out the Texas Strategic Bitcoin Reserve Act on December 12. The measure would let the state comptroller keep Bitcoin as a reserve asset for minimum five years.
Earlier, on November 12, Pennsylvania House Representative Mike Cabell proposed legislation allowing the state treasury to distribute up to 10% of its balance sheet towards Bitcoin. According to Cabell, Bitcoin might be a hedge since it provides financial consistency in uncertain economic conditions.
Especially, these state-level projects follow the November presidential election triumph of Donald Trump, during which he floated the concept of creating a nationwide Bitcoin reserve.
Ohio’s approach to Bitcoin-oriented legislation shows increasing enthusiasm among American states in embracing Bitcoin as a financial instrument, so opening the path for more general national integration.
