Ohio Lawmaker Introduces Bill to Establish Bitcoin Reserve for State Treasury

Ohio has become the third U.S. state to introduce legislation aiming to establish a Bitcoin reserve, following similar moves by Texas and Pennsylvania. On December 17, Ohio House Republican leader Derek Merrin introduced HB 703, also known as the Ohio Bitcoin Reserve Act, which would give the state treasurer the authority to purchase Bitcoin as part of Ohio's asset allocation strategy.

The bill, which does not mandate Bitcoin purchases but grants the state flexibility to invest in the cryptocurrency, comes amid growing concerns about the devaluation of the U.S. dollar. Merrin argued that Bitcoin could serve as a safeguard for Ohio’s financial future, 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.”

Merrin, who has been a vocal advocate for cryptocurrency, emphasized that Ohio must embrace new technologies to protect taxpayer dollars from inflationary pressures. "Ohio must embrace technology and protect tax dollars from eroding," he added. The bill is expected to serve as a framework for future legislation, with Merrin hopeful that lawmakers will be able to address the proposal quickly in the 136th General Assembly, which begins on January 6, 2025. Bills that are not enacted by the end of the current legislative session on December 31, 2024, will need to be reintroduced in the next session.

Merrin has been a staunch defender of cryptocurrency, earning an "A" rating from Coinbase’s lobbying arm, Stand With Crypto. He has previously highlighted the importance of creating a "21st century framework" to protect individuals' rights to trade and use digital assets.

A Growing Trend Among States

Ohio’s proposed Bitcoin reserve follows similar initiatives in Texas and Pennsylvania. In December 2023, Texas House Representative Giovanni Capriglione introduced the Texas Strategic Bitcoin Reserve Act, which proposes that the state’s comptroller hold Bitcoin as a reserve asset for at least five years. Similarly, Pennsylvania House Representative Mike Cabell introduced a bill in November that would allow the state’s treasury to allocate up to 10% of its balance sheet to Bitcoin, viewing the cryptocurrency as a hedge against economic instability.

These legislative efforts are seen as part of a broader movement to recognize Bitcoin as a legitimate asset, particularly in the face of economic uncertainty. The trend also aligns with statements made by former President Donald Trump, who has suggested the creation of a federal Bitcoin reserve.

As Ohio joins the ranks of states exploring Bitcoin as a potential reserve asset, Merrin’s proposed bill reflects a growing recognition of the cryptocurrency’s potential to provide financial stability and protection against inflation in uncertain economic times. With other states following suit, it seems the concept of state-backed Bitcoin reserves may be gaining momentum across the U.S.