Ohio Representative Pushes Bill to Authorize Bitcoin Investments for State Treasury

Bitcoin Bitcoin Reserve

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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December 18, 2024

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Ohio Representative Derek Merrin has introduced a bill that aims to authorize the state’s treasury to invest public funds in Bitcoin.

The proposal, known as House Bill 703 or the Ohio Bitcoin Reserve Act, seeks to establish a Bitcoin fund within the state’s treasury and grant the State Treasurer the authority to allocate funds to Bitcoin investments at their discretion.

“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 said in a post on X.

Bill Does Not Mandate Treasurer to Invest in Bitcoin

The bill proposes amendments to section 2981.12 and the addition of section 135.146 to Ohio’s Revised Code.

While it empowers the treasurer to make Bitcoin investments, it does not mandate specific purchase amounts or asset allocation targets.

Merrin said that Bitcoin can act as a safeguard for Ohio’s financial reserves, offering a tool to preserve public funds from devaluation.

He claimed this legislative step would allow Ohio’s government to “harness the power of Bitcoin” and reinforce the state’s financial standing.

The timing of the bill’s introduction is significant, as the legislative session is nearing its conclusion.

Merrin hopes the proposal will serve as a framework for debate in the next session, which begins in 2025.

The initiative aligns with broader efforts at the state and national levels to integrate Bitcoin into public financial systems.

Ohio’s move follows similar legislative actions in other states.

In November 2024, Pennsylvania Representative Mike Cabell introduced the Pennsylvania Bitcoin Strategic Reserve Act, which calls for up to 10% of the state’s treasury reserves to be allocated to Bitcoin as a hedge against inflation.

Meanwhile, on December 12, Texas Representative Giovanni Capriglione filed House Bill 1598, seeking to create a state-controlled Bitcoin reserve and permit state agencies to accept Bitcoin payments for taxes and fees.

Ohio’s Bitcoin push builds on a separate initiative led by Ohio State Senator Niraj Antani, who proposed legislation in October to allow state residents to pay taxes and fees using Bitcoin and other cryptocurrencies.

These developments point to a growing trend among U.S. states to explore the use of Bitcoin as a financial hedge and payment option for public funds.

Corporate Bitcoin Holders Expand BTC Reserve

The announcement comes as corporate Bitcoin holders like MicroStrategy and Metaplanet have expanded their Bitcoin holdings.

Earlier this week, MicroStrategy acquired 15,350 Bitcoin, valued at approximately $1.6 billion, bringing the company’s total Bitcoin holdings to 439,000 Bitcoin (currently over $46 billion).

Likewise, MARA Holdings (MARA) bought 11,774 BTC in the latest acquisition, the company announced on X on Dec. 10.

The mining firm purchased Bitcoin using proceeds from its zero-coupon convertible notes offerings, paying approximately $1.1 billion at an average price of $96,000 per Bitcoin.

Riot Platforms, a Bitcoin mining company, also announced plans to raise $500 million through a private bond offering to bolster its Bitcoin reserves further.