Emily Walker
On December 17, 2024, Ohio State Representative Derek Merrin (R-Monclova Township) launched new legislation to enable the state treasury to invest in Bitcoin. Dubbed House Bill 703, or the “Ohio Bitcoin Reserve Act,” this proposal aims to create a specific fund for BTC within the state treasury, allowing the State Treasurer the authority to acquire and maintain Bitcoin. While the bill does not require investments to be made, it opens the door for options down the line.
Ohio Considers Bitcoin as a Strategic Reserve
Merrin shared his plans via a post on X, stating: “I’ve introduced HB 703 to establish the Ohio Bitcoin Reserve within the treasury! This will give the State Treasurer the authority and flexibility to invest in Bitcoin, creating a structure for Ohio to strengthen its finances amid the dollar’s devaluation. Bitcoin can act as a valuable asset in maintaining our state’s financial stability.”
According to a statement from Merrin’s office, the aim of the legislation is clear: “With the rapid devaluation of the US dollar, the State Treasurer deserves the authority and adaptability to invest in Bitcoin for asset management. Ohio needs to adopt technology to safeguard taxpayer money from decline,” Merrin emphasized.
Merrin also mentioned he expects the new federal administration led by President-elect Donald Trump might consider setting up a national Bitcoin reserve, alluding to previous proposals from figures like Senator Cynthia Lummis (R-WY). He pointed out that similar legislation has emerged in states such as Texas and Pennsylvania, suggesting a trend toward viewing Bitcoin as a strategic reserve asset at multiple governance levels.
“Bitcoin is transforming finance and is set to redefine global economies. It represents sound money and digital property rights for holders. This legislation positions Ohio to leverage Bitcoin’s benefits for enhancing our state finances,” Merrin added in his announcement.
Andrew Burchwell, Executive Director of the Ohio Blockchain Council, voiced his enthusiasm: “Around the globe, governments are contemplating Bitcoin for strategic reserve assets, including the federal government and states like Texas, Pennsylvania, and Florida. I commend Representative Merrin for this initiative, ensuring Ohio remains at the forefront of innovation and technology, and I look forward to collaborating with the legislature in 2025 to maximize this opportunity.”
The introduction of House Bill 703 comes shortly before the 135th General Assembly’s conclusion, which is set to end on December 31, 2024. As the current session is wrapping up, this proposal will likely lay the groundwork for discussions in the upcoming session, commencing on January 6, 2025. Under Ohio law, unapproved bills must be reintroduced in the next session.
If passed, Ohio would become the third US state to set up a Strategic Bitcoin Reserve (SBR), following initiatives from Texas and Pennsylvania. Pennsylvania proposed its own SBR Act in November, which could enable investment of up to 10% of its General Fund into Bitcoin. Texas has recently introduced a more tempered bill to allow BTC donations, and possibly taxes, to be held for five years.
Florida is also preparing to establish its SBR in the first quarter of 2025, encouraged by supportive leadership and the Florida Blockchain Business Association (FBBA).
In contrast, states like Michigan and Wisconsin have taken a more cautious stance, primarily focusing on Bitcoin-related ETFs and trusts. Notably, Wisconsin’s Investment Board was the first state pension fund to invest in Bitcoin ETFs back in May.
At the time of reporting, Bitcoin was priced at $103,987.
