Ohio Takes Bold Step with Bitcoin Reserve Bill: What You Need to Know

Ohio's Shift Towards Crypto Investments

Ohio is making headlines with its new strategic Bitcoin reserve bill, which allows the state to invest up to 10% of its funds in digital assets. This significant move signals a shift in state-level monetary strategies aimed at combating inflation.

Key Takeaways

• The strategic crypto reserve bill permits the state to invest up to 10% of its general fund, budget stabilization fund, and prizes trust fund into a reserve of digital assets, particularly Bitcoin.
• The bill stipulates that only Bitcoin currently meets the market cap threshold, ensuring limited initial investment options.

Former presidential candidate Vivek Ramaswamy has praised the bill as a powerful and thoughtful initiative. Introduced by State Representative Steve Demetriou and backed by six co-sponsors, the bill, known as House Bill No. 18, aims to protect state funds from inflation's erosive effects.

“By allowing an option to invest in a strategic Bitcoin reserve, we can hedge against inflation and keep Ohio on the cutting edge of monetary and technological innovation,” Demetriou stated.

The legislation uses the term “digital asset” instead of explicitly mentioning Bitcoin, allowing Ohio to maintain technological neutrality and avoid political friction. Dennis Porter, CEO of the Satoshi Action Fund, supports this approach.

The bill requires that any crypto investments must be exchange-traded products with an average market capitalization of at least $750 billion over the past year. Currently, only Bitcoin meets this requirement, although the bill allows for other digital assets to qualify if they reach this threshold in the future.

Additionally, the bill sets strict requirements for secure custody solutions, permitting the state to either hold digital assets directly or utilize qualified custodians.

If approved, this bill would mark a significant advancement for Ohio in adopting digital assets as a potential investment vehicle for state funds and retirement systems. This is Ohio's second attempt at establishing a Bitcoin reserve, following a previous bill introduced last month.

The initiative aligns with recent federal moves towards a crypto-focused regulatory framework, spurred by an executive order from President Donald Trump. Ramaswamy, who recently stepped down from his role as co-head of the Department of Government Efficiency, is expected to announce his bid for Ohio governor soon.