Summary:
Derek Merrin introduces House Bill 703 for a state Bitcoin fund.
The bill allows the State Treasurer to invest public funds in Bitcoin.
Merrin argues that Bitcoin can help protect against the devaluation of the U.S. Dollar.
Ohio's legislation aligns with similar initiatives in Pennsylvania and Texas.
The bill sets the stage for future legislative discussions in 2025.
Ohio Bitcoin Reserve Act
Ohio State Representative Derek Merrin has introduced House Bill 703, the Ohio Bitcoin Reserve Act, aiming to allow the state treasury to invest public funds in Bitcoin. This bill proposes the establishment of a dedicated Bitcoin fund within the state treasury, granting the State Treasurer the authority to purchase the cryptocurrency at their discretion.
Merrin emphasized the need for this initiative, stating, "The U.S. Dollar is being rapidly devalued, and our State Treasurer should have the authority and flexibility to invest in Bitcoin when determining proper asset allocation." He believes that Ohio must embrace technology to protect tax dollars from eroding.
Legislative Details
The bill amends section 2981.12 and enacts section 135.146 of Ohio's Revised Code. Importantly, it does not mandate specific Bitcoin purchases or portfolio allocations. Merrin argued that Bitcoin could serve as a vehicle to preserve public funds from losing value, allowing the state to harness its potential to strengthen finances.
Future Outlook
Looking ahead, Merrin anticipates that the incoming Trump administration will pursue a national Bitcoin reserve program, referencing a proposal by Senator Cynthia Lummis of Wyoming. The bill's introduction comes as the current legislative session approaches its end, with Merrin expecting it to serve as a framework for future discussions in the 2025 session.
A Growing Trend
Ohio joins a list of states, including Pennsylvania and Texas, that have proposed similar legislation to create strategic Bitcoin reserves as a hedge against inflation. This trend reflects a broader movement among U.S. states to incorporate cryptocurrency into their financial strategies. For instance, Pennsylvania's bill allows for investing up to 10% of the stateâs treasury reserves into Bitcoin, while Texas aims to create a reserve funded through donations and accept Bitcoin for state payments.
Edited by Sebastian Sinclair
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