A new bill introduced in Ohio could pave the way for the state to invest in Bitcoin as part of its treasury holdings. House Republican leader Derek Merrin presented House Bill 703, known as the Ohio Bitcoin Reserve Act, on December 17, 2024.
The proposed legislation would authorize the state treasurer to purchase and hold Bitcoin as part of Ohio's asset portfolio, though it does not mandate any specific investment amounts. If passed, Ohio would become the third U.S. state to establish a framework for holding Bitcoin in government reserves.
"As the U.S. dollar undergoes devaluation, Bitcoin provides a vehicle to supplement our state's portfolio and preserve public funds from losing value," Merrin stated when announcing the bill. He emphasized that Ohio needs to embrace new technology while protecting taxpayer dollars.
The bill's introduction follows similar recent moves by other states. Texas proposed legislation requiring its comptroller to hold Bitcoin for at least five years, while Pennsylvania introduced a bill allowing up to 10% of its treasury funds to be allocated to Bitcoin.
While the current legislative session ends December 31, 2024, the Ohio Bitcoin Reserve Act is expected to serve as a framework for discussion when the next session begins in January 2025. Any action on the bill would likely take place in the new session.
The Ohio Blockchain Council has expressed support for the initiative. Executive Director Andrew Burchwell noted that governments worldwide are considering Bitcoin as a strategic reserve asset, positioning Ohio as a potential leader in financial innovation.
At the time of the bill's introduction, Bitcoin was trading at $103,987. The cryptocurrency's growing adoption by state governments reflects its increasing recognition as a potential hedge against economic uncertainty and currency devaluation.