Ohio State Representative Derek Merrin introduced a bill to establish a Bitcoin reserve in the state’s treasury. Ohio becomes the third US state to do so after Texas and Pennsylvania.
House Bill 703, the Ohio Bitcoin Reserve Act, proposes the creation of a state Bitcoin fund and grants the treasurer the authority to purchase the asset.
Ohio Proposes State Bitcoin Reserve
The bill, introduced by Ohio State Representative Derek Merrin, sees Ohio follow in the footsteps of Texas and Pennsylvania in introducing a bill that would authorize the state treasury to use public funds and invest in Bitcoin (BTC). However, the bill does not mandate such investments. Representative Merrin released a statement highlighting the rapid devaluation of the US Dollar, suggesting that BTC could act as an avenue to protect tax revenue and strengthen the state’s financial position. Merrin stated on X,
“Today, I filed HB 703 to create the Ohio Bitcoin Reserve within the state treasury! Provides state treasurer authority & flexibility to invest in #Bitcoin This legislation creates the framework for Ohio’s state government to harness the power of Bitcoin to strengthen our state finances. As the US dollar undergoes devaluation, #Bitcoin provides a vehicle to supplement our state's portfolio and preserve public funds from losing value.”
House Bill 703 amends section 2981.12 and enacts section 135.146 of Ohio’s Revised Code. However, it does not mandate portfolio allocations or specific Bitcoin purchases. Merrin argued that the Ohio state government could use legislation to harness Bitcoin and strengthen the state’s financial reserves.
Merrin anticipates the bill will be used as a framework during Ohio’s next legislative session. The bill must be reintroduced in the 136th General Assembly, which will commence January 6, 2025, and last two years. Merrin hoped the bill would “pave the way for legislatures to address it quickly next year.”
“Bitcoin is revolutionizing finance and will reshape world economies. We must have sound money — It’s like digital property rights for everyone who owns it. This legislative sets up the framework for Ohio’s state government to harness the power of Bitcoin and strengthen our state finances.”
Similar Legislation In Other States
Ohio joins a fast-growing list of other US states enacting similar legislation. Texas and Pennsylvania have also introduced bills to establish a state Bitcoin reserve following Donald Trump’s victory in November. Trump also proposed creating a Federal Bitcoin reserve. Texas House Representative Giovanni Capriglione introduced the Texas Strategic Bitcoin Reserve Act proposing the state’s comptroller hold BTC as the state’s reserve asset for a minimum of five years.
Pennsylvania House Representative Mike Cabell introduced its bill a month earlier, proposing allowing the state treasury to hold up to 10% in BTC on its balance sheet. Cabell stated Bitcoin could be used as collateral or as a hedge, offering stability during periods of economic uncertainty. Ohio State Senator Niraj Antani proposed a separate tax bill proposing to accept Bitcoin and other cryptocurrencies as payment.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.