Ohio’s Bitcoin Reserve Act empowers the state treasurer to invest public funds in Bitcoin, ensuring asset flexibility.
The bill positions Bitcoin as a hedge against inflation, reflecting growing state-level adoption of cryptocurrency.
Similar Bitcoin reserve initiatives in Pennsylvania and Texas highlight increasing interest in crypto for public fund management.
Ohio State Representative Derek Merrin has proposed House Bill 703 to establish a Bitcoin reserve within the state treasury. The proposed bill is known as the Ohio Bitcoin Reserve Act.
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It seeks to enable the State Treasurer to allocate public funds for investment in Bitcoin as a component of asset management plans. It does not require Bitcoin acquisitions but offers flexibility in handling public funds.
Key Provisions of the Ohio Bitcoin Reserve Act
The suggested legislation creates a specific Bitcoin fund in the state treasury. Specifically, it modifies section 2981.12 and establishes section 135.146 of Ohio's Revised Code. This structure enables the Treasurer to classify Bitcoin as a financial asset. By diversifying its investments, the state aims to protect its funds from the devaluation that inflation can cause.
The legislation comes as the current legislative session nears its conclusion. Merrin anticipates the bill will be reintroduced during the 2025 General Assembly. It is expected to serve as a foundation for discussions on integrating cryptocurrency into state financial policies.
Bitcoin Legislation Gains Momentum Across States
Ohio joins other states in proposing Bitcoin-related legislation. In November 2024, Pennsylvania launched the Bitcoin Strategic Reserve Act. This proposal permits the allocation of up to 10% of the state’s treasury reserves to Bitcoin as a hedge against inflation.
Texas has also enacted the Texas Strategic Bitcoin Reserve Act. This law aims to create a Bitcoin reserve financed by contributions. It also permits state agencies to accept Bitcoin as payment for taxes and fees.
Ohio has shown increasing interest in cryptocurrency adoption. Earlier, a separate proposal sought to accept Bitcoin for tax payments. These initiatives reflect a growing trend among states to incorporate Bitcoin into their financial frameworks.
The Ohio Bitcoin Reserve Act emphasizes Bitcoin's ability to enhance state portfolios and safeguard public finances. Its return in 2025 could represent an important advancement in the wider acceptance of cryptocurrency within governmental financial frameworks.
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