Bitcoin Reserve Bill Introduced By Ohio State Lawmaker

Bitcoin Reserve Bill Introduced By Ohio State Lawmaker

Ohio State Representative Derek Merrin (R-Monclova Township) introduced new legislation on December 17, 2024, aimed at authorizing the state treasury to invest in Bitcoin as part of its asset portfolio. Known as House Bill 703, the “Ohio Bitcoin Reserve Act” seeks to establish a dedicated BTC fund within the state treasury, providing the State Treasurer with the legal framework to purchase and hold BTC. The measure does not mandate any specific investment but opens the possibility for future allocation.

Ohio State Consider Strategic Bitcoin Reserve

In an announcement shared via X, formerly Twitter, Merrin stated: “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.”

The official press release from Merrin’s office emphasizes the legislation’s primary goals: “The US Dollar is being rapidly devalued, and our State Treasurer should have the authority and flexibility to invest in Bitcoin when determining proper asset allocation. Ohio must embrace technology and protect tax dollars from eroding,” Merrin said in the statement.

Merrin’s release also notes that he anticipates the incoming federal administration—under President-elect Donald Trump—may explore establishing a national BTC reserve, referencing prior proposals such as one by Senator Cynthia Lummis (R-WY). According to Merrin’s statement, similar legislation has been introduced in other states, including Texas and Pennsylvania, potentially indicating a growing trend at both state and federal levels to consider Bitcoin as a strategic reserve asset.

“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 legislation sets up the framework for Ohio’s state government to harness the power of BTC to strengthen our state finances,” Merrin stated in his press release.

The Ohio Blockchain Council’s Executive Director, Andrew Burchwell, expressed support: “Governments worldwide are considering investment in Bitcoin as a strategic reserve asset, including the US federal government and states like Texas, Pennsylvania, and Florida. I applaud Representative Merrin for introducing this legislation to ensure Ohio is positioned as a leader in innovation and technology, and I look forward to working with the legislature in 2025 to ensure that Ohio makes the most of this opportunity.”

The introduction of House Bill 703 comes just two weeks before the end of the 135th General Assembly, scheduled to adjourn on December 31, 2024. Since the current session is nearing its close, the proposal will likely serve as a framework for the next legislative session, which begins on January 6, 2025. Under Ohio law, bills not passed by the end of a session must be reintroduced in the following term.

With the bill, Ohio is poised to become the third US state to establish a Strategic Bitcoin Reserve (SBR), following recent initiatives in Texas and Pennsylvania. Pennsylvania, which introduced its own SBR Act in November, could invest up to 10% of its General Fund into Bitcoin. Texas has taken a more moderate step last week, introduced a bill to allow donations and possibly taxes paid in BTC to be held for a minimum of five years.

Florida is also on track to create its own SBR as early as the first quarter of 2025, supported by pro-Bitcoin leadership and advocacy from the Florida Blockchain Business Association (FBBA).

In contrast, Michigan and Wisconsin have opted for more conservative approaches, focusing primarily on BTC-related ETFs and trusts. Notably, the Wisconsin Investment Board became the first state pension fund to acquire Bitcoin ETFs in May of this year.

At press time, BTC traded at $103,987.

Bitcoin price
BTC price, 1-week chart | Source: BTCUSDT on TradingView.com

Featured image created with DALL.E, chart from TradingView.com

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