A State Strategy
Ohio Representative Proposes Bill to Invest Public Funds in Bitcoin
Ohio State Representative Derek Merrin has introduced a bill that would authorize the state’s treasury to invest public funds in Bitcoin. The bill, known as the Ohio Bitcoin Reserve Act, would establish a dedicated Bitcoin fund within the state treasury and grant the State Treasurer discretionary power to purchase the crypto.
In a statement, Merrin argued that the U.S. dollar is being rapidly devalued and that the state treasurer should have the authority and flexibility to invest in Bitcoin when determining proper asset allocation. He also stated that Ohio must “embrace technology and protect tax dollars from eroding.”
The Bill
The bill, House Bill 703, amends section 2981.12 and enacts section 135.146 of Ohio’s Revised Code. However, it does not mandate any specific Bitcoin purchases or portfolio allocations.
“Bitcoin provides a vehicle to supplement our state’s portfolio and preserve public funds from losing value,” Merrin stated. He argued that through the legislation, the Ohio state government could “harness the power of Bitcoin” to strengthen its state finances.
Anticipating National Movement
Merrin expects the incoming Trump administration to pursue a national Bitcoin reserve program, referencing a proposal by Senator Cynthia Lummis of Wyoming.
A Growing Trend
Ohio joins a growing list of other U.S. state representatives putting forth similar legislation. In November 2024, Representative Mike Cabell introduced the Pennsylvania Bitcoin Strategic Reserve Act, proposing that up to 10% of the state’s treasury reserves be allocated to Bitcoin as a hedge against inflation.
Shortly after, Texas followed suit. Representative Giovanni Capriglione filed House Bill 1598 on December 12, aiming to create a strategic Bitcoin reserve funded through donations. The bill also seeks to authorize state agencies to accept Bitcoin for payments, including taxes and fees.
A State Strategy
The bill’s introduction comes as the current legislative session nears its end. Merrin expects the legislation to serve as a framework for lawmakers to address in the upcoming session in 2025.
Conclusion
The proposal by Ohio Representative Derek Merrin to invest public funds in Bitcoin is part of a growing trend among U.S. state representatives to explore the potential of digital currencies. As the value of the U.S. dollar continues to fluctuate, states are looking for ways to diversify their portfolios and protect their finances. The Ohio Bitcoin Reserve Act could be a crucial step in establishing a state strategy for investing in Bitcoin and potentially reaping the benefits of this rapidly growing market.
FAQs
What is the Ohio Bitcoin Reserve Act?
The Ohio Bitcoin Reserve Act is a bill proposed by Ohio State Representative Derek Merrin that would authorize the state’s treasury to invest public funds in Bitcoin.
What are the benefits of investing in Bitcoin?
Investing in Bitcoin can provide a hedge against inflation and potentially generate returns for the state’s treasury. It can also provide a way for the state to diversify its portfolio and reduce its reliance on traditional assets.
Has this bill been introduced before?
No, this is the first time the Ohio Bitcoin Reserve Act has been proposed. However, similar legislation has been introduced in other states, including Pennsylvania and Texas.
What is the current state of the U.S. dollar?
The value of the U.S. dollar has been fluctuating in recent years, and some experts predict that it may continue to decline. Investing in Bitcoin and other digital currencies could provide a way for states to protect their finances and potentially generate returns.
What is the potential impact of this legislation on Ohio’s economy?
The potential impact of the Ohio Bitcoin Reserve Act on Ohio’s economy is still unknown. However, if passed, it could provide a new revenue stream for the state and potentially attract new businesses and investments to the state.
