Key Takeaways
- The proposed bill would create a BTC fund within the treasury, giving the state treasurer the authority to allocate funds to Bitcoin investments
- Merrin stated that the bill aims to address concerns about the devaluation of the U.S. dollar
Ohio Representative Derek Merrin has introduced a legislative proposal to allow the state treasury to invest in Bitcoin. The proposed bill, known as House Bill 703 or the Ohio Bitcoin Reserve Act, would create a BTC fund within the treasury, giving the state treasurer the authority to allocate funds to Bitcoin investments as part of the state’s financial strategy.
Merrin stated that the bill aims to address concerns about the devaluation of the U.S. dollar, noting that Bitcoin could help protect the state’s financial reserves. “Ohio must embrace technology and protect tax dollars from eroding,” Merrin said. He further dubbed the move as an opportunity for Ohio to strengthen its financial position through Bitcoin’s growing role in global finance.
The bill’s introduction comes as the 135th General Assembly approaches its conclusion on December 31, 2024, leaving little time for debate. Merrin acknowledged this timing challenge and expressed hope that the proposal would serve as a framework for discussion in the next legislative session, which begins in January 2025.
Ohio’s initiative mirrors recent legislative efforts in other states. Pennsylvania Representative Mike Cabell recently proposed a bill to allocate up to 10% of the state’s treasury reserves to Bitcoin, citing its potential as a hedge against inflation. Similarly, Texas Representative Giovanni Capriglione introduced a proposal for a state-managed Bitcoin reserve to hold Bitcoin as a financial asset.
House Bill 703 would amend Ohio’s revised code to permit Bitcoin investments but would not mandate specific purchase amounts or asset allocations. Merrin described this flexibility as essential for adapting to economic changes and ensuring the treasury has the tools needed to protect state finances.
However, the bill will need to be reintroduced in the 136th General Assembly if it is not passed before the current session ends. Merrin’s proposal comes amid growing Bitcoin adoption in the private sector. Earlier this month, Business intelligence firm MicroStrategy acquired 15,350 Bitcoin, raising the firm’s total Bitcoin holdings to 439,000 BTC, valued at more than $45 billion.
